JPMorgan Chase Tai Hui, Chief Market Strategist for Asia-Pacific at an asset management firm, believes there are two reasons why the market has not reacted strongly to a potential U.S. military intervention in Venezuela. First, Venezuela’s oil production accounts for a very small share of global output (approximately 1%). Years of underinvestment mean it cannot rapidly increase production in the short term to contribute to global supply.Given that Donald Trump has announced the U.S. will “take over” Venezuela in the near term, it remains unclear where the new regime is headed. The impact on global markets will, at most, be felt through the energy sector. Of course, this event carries broader geopolitical implications, but “in my view, financial markets are not efficient at accurately pricing such risks.”