Former U.S. Treasury Secretary Lawrence Summers said investorsare far too sanguine about the risks of Donald Trump's policies,which analysts at Eurasia Group say could contribute to a level ofglobal instability not seen since World War II.

The Harvard professor, a Democrat who was Treasury chief underBill Clinton, Tuesday cited the possibility of protectionistmeasures by the U.S., as well as changes to foreign policy anddomestic social programs, as issues that are creating“extraordinary uncertainty.” Analysts at consulting firm EurasiaGroup echoed those sentiments in a new report, saying the world isentering a period of “geopolitical recession” in 2017.

With Trump's ascent to the presidency on an America Firstplatform, the global economy can't count on the U.S. to provide“guardrails” anymore, according to Eurasia, which advisesinvestors on political risk. Trump's signals of a thaw with Russia,skepticism toward the North Atlantic Treaty Organization and his“alignment” with European anti-establishment parties such asFrance's National Front could weaken the main postwar allianceprotecting the global order, according to its report releasedTuesday.