The Russian invasion of Ukraine has sent shockwaves through the financial markets.

But what does the data reveal, and what should investors make of it?

Section 1: Market Anticipation and Reaction

Markets did not fully anticipate the war, reacting more strongly in the second week.

The unexpected nature of the conflict and the realization that it wouldn’t end quickly led to significant market fluctuations. Investors should be aware of the potential for sudden geopolitical shifts.

Section 2: Equity and Foreign Exchange Assets

Perception of risk in stocks and foreign currencies was influenced by exposure to commodity trade and trade with Russia-Ukraine.

Assets connected to Russia-Ukraine trade faced increased volatility. Diversification and careful risk assessment are key for investors in this environment.

Section 3: Fiscal Risks for Non-Belligerent Countries

The war posed financial risks even for countries not directly involved, as seen in credit default swap prices and breakeven inflation rates.

The conflict’s ripple effects reached beyond the immediate region, affecting global financial products. Investors should consider the broader implications of geopolitical events.

What It Means for Investors

The Russian invasion of Ukraine has had complex and far-reaching effects on financial markets.

The data underscores the importance of understanding geopolitical dynamics, assessing risk exposure, and maintaining a diversified portfolio.

What we’re doing about it: This is something we’re considering as we manage your investments.

The strategy we’re using carefully considers global economic exposure & uncertainty.

Investing in today’s world requires more than just market acumen; it demands a keen eye on global events. Stay informed, stay agile, and navigate the waves of uncertainty with confidence or hire someone else to.