There is only one story to focus on from the last week – which is of course the Russian invasion of Ukraine. Given the fluidity of the situation, it is somewhat futile to attempt to summarise the current position. It may almost seem inappropriate to focus on the investment implications of the unfolding scenario, we will try to bring together some thoughts below.
Despite assurances from President Putin that Russia would not invade Ukraine, forces crossed the border before dawn on Thursday morning. The stock market reaction was fierce and immediate with European markets opening down over 4%. In Russia last Thursday, (a stock market that Zurich does not invest in) markets lost a scarcely believable 38% in local currency terms, which is currently being confirmed as the worst one day performance for any stock market in history. As a consequence of the raft of western sanctions on Russia, the Rouble has depreciated significantly over the weekend and the stock market opening bell has been delayed this morning. Indeed, last week was actually positive for global stock markets but the week ahead looks set to be extremely volatile.
In times of market stress, it is always important to maintain perspective, and for clients and customers to stick with their financial plan. Our consumer facing Investment Principles document serves as a useful reminder in times of market stress. At Zurich, we have a number of resources for you and your clients to utilise to help emphasise some of these key investment principles, so please do ask your Zurich Broker Consultant for more information. CLICK HERE