Navigating geopolitical events: Ukraine and its impact on markets
Russia’s invasion of Ukraine is an important reminder that geopolitical risk is a part of investing in global markets.
Investors in global equity portfolios inevitably face periods of geopolitical tensions. Sometimes these events lead to restrictions, sanctions, and other types of market disruptions. We cannot predict when these events will occur or exactly what form they will take. However, we can plan for them by managing diversified portfolios and building flexibility into our process.
If you’re concerned about how current events may be impacting your portfolio, please contact your adviser, who is there to help you through times of volatility.
Before making any changes to your portfolio, it is important to get advice from your adviser so they can work with you to ensure your portfolio continues to meet your goals.
For resources and information about your portfolio and the market, please refer to the articles below or visit the insights page on our website.
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Synergy update – Fund manager responses to Ukrainian crises |
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As we watch events in the Ukraine unfold, many Synergy investors are asking which investment fund managers have exposure to Russian assets, and how they are dealing with these investments going forward? Synergy portfolios contain eight managers with strategies that potentially have exposure to Russian companies in their funds. |
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Russia, Ukraine and a lesson in diversified investing |
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In the midst of such turmoil, markets have operated exactly as they should. Global uncertainty has increased. As a result, buyers require a higher expected return from purchasing shares. They achieve those higher expected returns by purchasing at lower prices. Sellers, meanwhile, are happy to accept a lower price and a resulting lower realised return in order to reduce their uncertainty. |
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Navigating market volatility |
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In stark contrast to most of the past decade, the first few months of 2020 have delivered a large increase in market volatility. A big factor in this has, of course, been the emergence and spread Covid-19.
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Business will never go out of business |
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Benjamin Roth was a lawyer in Youngstown, Ohio, when the stock market crashed in 1929. Two years later he decided to keep a diary to detail the effects that the financial collapse had on himself, his neighbours, and the nation. Mr. Roth kept his diary for ten years. In the late 1930s, when the depression had mostly passed, he summarised a few points he had learned from the experience. |