Markets shrugged off increasing geopolitical tensions for months, but lately investors seem more sensitive to flare-ups in Ukraine and the Middle East.

U.S. stock markets sailed through Russia’s March annexation of Ukraine’s Crimean peninsula and months of tit-for-tat sanctions between Moscow and the West. The Dow Jones industrial average gained more than 300 points that month. When Islamist militants started capturing key Iraqi cities in June, threatening the integrity of Iraq, markets continued to climb steadily. By the end of June, the Dow had gained 500 points since the beginning of the year. [Read more] – Michael’s Blog