Pope Francis has passed away, and I found myself wondering: does something like this really impact the global economy?

At first, it felt like a stretch – but then I did some digging. Surprisingly, it does have a small but noticeable effect.

The Vatican isn’t just a spiritual hub. It’s also a powerful financial institution. It manages billions in assets, including global investments, property, priceless art, and its own bank. For something often seen as purely religious, its economic footprint is a lot bigger than most people realize.

When the leader of such an institution dies, it introduces a wave of uncertainty – and if there’s one thing markets don’t like, it’s uncertainty.

Here’s what usually happens.

Markets in Europe are the first to react. Investors become cautious. Sometimes, Italian banking stocks dip slightly. Safe-haven assets like gold or the US dollar tend to rise a bit, as people take a step back and wait to see what unfolds.

It’s not the kind of thing that sends global markets into panic mode. It’s more like a short-lived ripple – a pause, a breath. Once a new Pope is elected and things start to feel stable again, markets generally settle and recover quickly.

What’s fascinating is how the choice of the next Pope can shape things further. A progressive leader might shift how the Church interacts with modern politics, issues like climate change, social development, and even global economic justice. That could lead to new conversations, new partnerships, and possibly even new tensions. A more traditional choice would bring a different energy, maybe more conservative, maybe more cautious, but still influential in its own way.

It’s subtle, but very real: even faith has financial consequences. And it reminds me how deeply interconnected the world is, from the Vatican and Pope Francis to Wall Street, from belief systems to market systems.

What are your thoughts?

On a side note – if you want to read further into the Vatican’s holdings:
https://www.reuters.com/world/vatican-publishes-details-its-investments-2022-07-24/

Another article from me covering Market Volatility in more detail: https://youngandcalculated.blog/mastering-market-volatility-winning-strategies-for-thriving-amid-trumps-tariffs/