Escalation: Russia decides to invade Ukraine

Photo: Shutterstock

In an ad-hoc meeting, the Credit Suisse Investment Committee (IC) met to discuss the escalation in the Ukraine conflict: As Russia is moving toward a full-scale military escalation, the conflict has now turned into what we described in mid-February as our "Invasion and Open Conflict" scenario. Late last year, we reduced risk in portfolios due to rising geopolitical tensions. We sold our overweight position in global equities, as we feared that a combination of monetary tightening and the Russia conflict plus rising energy prices would create an unwelcome confluence of headwinds.

Although members of the IC agree that markets will learn to live with the reality of a new world order in the longer term, we advocate continued caution in the near term.

For the time being, we keep our current allocations, including a neutral allocation to equities. Moreover, we believe investors should still seek ways to provide portfolio diversification also with respect to this geopolitical crisis and the potential impact on other economies.

Tags:  אסטרטיגה כלכלה מלחמה מנהיגות פיננסים

---