NEW YORK CITY—In his most recent post, Ethan Penner discusses how the perception of American diplomatic weakness has allowed a few bad actors to wreak international havoc, and explains the greater ramifications for the global and domestic markets.

Kindness can become a disservice, Penner explains. This is what was missed when both President Barack Obama and Former Secretary of State Hillary Clinton expressed their desire to press the reset button on Russia and Iran. As an act of diplomatic kindness, as Penner describes, it has allowed these states to advance their disruptive agendas. Penner further describes how it's a allowed the problems the world is now seeing in Syria, Venezuela and North Korea to foment.

What does this mean for the global economy? Penner sees it as a destabilizing force, but mentions the more stable markets where money might seek refuge.