9 March 2022
Asset Allocation Outlook March
Last month we said there was still hope for equity investors for 2022. We still think that, although investors will need to exercise patience. The reason is of course the Russian invasion of Ukraine which, aside from unimaginable human suffering and damage to infrastructure, is generating enormous uncertainty. Equity markets fell in February, globally by 2.7%, with Europe (-5.2%) hit harder than the US (-3.1%). That was nothing compared to the Russian market, however, which dived over 30% in a single day and was subsequently closed. The rouble has also plummeted. Investors sought safety in government bonds, causing US 10-year bond yields to fall to 1.7% and German yields to drop back below zero. The big winners were commodities, especially oil, the price of which climbed to 114 US dollars a barrel at the start of March, its highest level since February 2013. European gas prices shot up again.
Please see Kempen’s Asset Allocation Outlook for March. The highlights this month are:
- Russian invasion of Ukraine brings uncertainty
- Global economy can absorb a knock, as long as energy supplies are kept up
- Fewer interest rate hikes expected
- More cautious investment policy
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The information in this publication is of a general nature. This publication may at no time be viewed as an offer and you cannot derive any rights from this publication. The external sources used to produce this publication were selected with the great care.
We cannot guarantee that the information and data from these sources is up-to-date, correct and exhaustive. We accept no liability for printing and typing errors. We are not obliged to update or amend the contents in this publication.
All rights related to the content of this publication are reserved, including the right to amend.
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