Global Markets have opened the week reacting to the overnight news of further sanctions against Russia, with the US discussing a ban on oil imports from Russia. This a direct consequence of the continued aggression shown by the Russian military in Ukraine.
Asian markets declined overnight and Europe has reacted in a similar manner this morning. It is expected that US markets will also open lower but not to the same levels as Europe.
Overnight oil and natural gas prices increased significantly, in the case of oil +18% at the peak, but currently +6%, taking them to the highest level since 2008. The prospect of higher energy costs, higher levels of inflation for longer and the consequences for global growth are contributing to this morning’s market volatility.
News flow is constant and our experience in managing multi-asset portfolios is to make asset allocation decisions, positioning the portfolios in the best way, when markets are falling and for the recovery which can be significant. We are not limited to company shares, the portfolios also hold bonds plus gold and commodities which are increasing in value.
Two years ago we faced uncertainty of a much different nature and whilst stock markets reacted to enforced lockdowns, the response to good news was rapid and resounding. Looking past the invasion of Ukraine which, of course, is front and centre of minds, we have global economic strength and central banks who have recent experience in responsibly managing monetary policy, issuing support when required. Remaining invested allows us to participate in upturns as the situation stabilises.
We are in constant contact with our investment partners who include some of the world’s biggest global financial institutions and between us we will make decisions in the best interests of our clients as the days and weeks go by.
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