**Unsettled World Politics: A Stark Contrast to Steady Stock Markets**

Despite facing a whirlwind of global political tensions and dramatic moments in U.S. politics, the stock market has remained unusually placid this year. Interestingly, this upbeat stock market performance persists, even as storm clouds gather over other financial markets.

For years, the prevailing belief has been that national elections rarely affect the stock market. Examining stock returns over more than a century supports this idea; returns have generally been positive regardless of political upheaval. This historical trend might partly explain why stocks have stayed buoyant despite the current uncertainty.

However, the picture is not all rosy when we look beyond stocks. Recently, the fixed-income markets have been flashing red signals. Interest rates in the bond market have surged ever since the Federal Reserve started to reduce the short-term rates it controls on September 18. This upward spike, coupled with signs that the U.S. economy may be tightening rather than loosening, raises eyebrows.

Adding to the concern is the rising cost of insuring U.S. government debt, which has escalated since September. This increase far outstrips similar costs for other major nations, hinting at growing unease over the country's swelling debt burden.

As investors navigate these turbulent times, it’s wise to consider diversifying into safer investments. The enduring strength of the stock market might be reassuring, but with fixed-income markets showing distress signals, a balanced portfolio could be a prudent strategy.