Expect some market volatility in the short term as investors assess the impact of these events.
Super savers want social and green returns
Some early thoughts on financial markets given the Ukrainian conflict
2022 has not been without incident. So far, we’ve experienced; rising rates, breakaway inflation in the United States, and now what has been described by Boris Johnson as the most serious ground war in Europe since 1945 when Russia Invaded Ukraine on Thursday the 24th of February.
Firstly, our thoughts and prayers go to those impacted by conflict.
In summary, we do not see this conflict changing our constructive perspective on equity markets, particularly those outside the US. Portfolio managers will however need to consider their positioning, as volatility looks set to continue, creating significant disparities in performance across stocks, funds and ETFs.
We outline key impacts investors will need to consider when re-evaluating their portfolios.
The escalation in Ukraine tensions – implications for investors
Ukraine tensions have escalated with Russia ordering troops into Ukraine regions already occupied by Russian separatists.
Share markets are at high risk of more downside on fear of further escalation and uncertainty about sanctions/gas supply to Europe.
The history of crisis events shows a short term hit to markets followed by a rebound over 3 to 12 months.
Given the difficulty in timing market reactions to geopolitical developments the best approach for most investors is to stick to an appropriate long term investment strategy.
Here’s why you need to consolidate your super
New super rules that have been introduced mean employees are now ‘stapled’ to their existing superannuation fund, unless they choose otherwise. That’s why it’s more important than ever to consolidate your super and take control of your retirement savings. Here’s what you need to know about the super stapling rules.
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You might think there’s not much you can do to increase the value of your superannuation in retirement. But with Australians now spending close to 30-years in retirement on average[1], our super needs to last longer than ever.
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Average dwelling prices in Australia’s capital cities rose by 2.3% in May, their eighth monthly gain in a row, although having settled somewhat since the 2.8% recorded in March. Capital city prices are now 7.8% higher than previous records set in September 2017. Prices in Sydney alone, hardly at bargain basement levels before COVID-19 began, have increased by 14.3% in just four months, their fastest such increase in more than 30 years.
