What's happening around Venezuela is a reminder that political risk reprices instantly. Sanctions, recognition shifts, trade restrictions, frozen assets, none of these show up on a balance sheet.
BUT, it still can take an asset from deep value to uninvestable overnight.
When people say "Markets overreact to politics", I get really skeptical, like, sometimes politics IS the fundamental.
It sounds quite obvious, but I still read things like that. How do you factor US political cycles into investments exposed to unstable regimes? Higher DR, smaller position sizing or do you just pass?