Russia’s invasion of Ukraine has thrown policymakers, companies and markets into an inherently uncertain world.
Global share markets had a strong rebound at the end of last week, but that was before the US, UK, EU and Canada announced that some Russian banks would be cut off from the key global financial transaction service SWIFT, and that the Russian central bank would be denied access to much of its foreign reserves.
Although the Russian invasion has jolted markets, history tells us that geopolitical risk has had little impact on markets in the long term. Historically there has been little correlation between major geopolitical events and market upheavals.
The caveat of looking back on history for guidance is that nothing is ever guaranteed, and the past is not a predictor of the future. However, sticking with your saving and investing strategy and remaining disciplined can pay off, as sharp market moves due to geopolitical events are usually fleeting. - RAIZ INVEST
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