Alfred Lam, CFA, Senior Vice-President and Chief Investment Officer CI GAM | Multi-Asset Management
We are all saddened by the news of Russia’s invasion of Ukraine. We hope this war will end soon and that the people of both countries will find relief.
Markets initially reacted to the invasion with calm as the looming concern had become reality, which is generally considered good news by capital markets. Over the years, we have seen conflicts and wars between countries, which investors typically regard as isolated events. This time was the same but only initially. This invasion was unpopular and has reached the hearts of many leaders and civilians across the globe. Through social media, we have witnessed strong leadership from Ukraine’s President Volodymyr Zelensky who did not give up on his people. The conflict between Russia and Ukraine quickly turned into a conflict between Russia and the rest of the world. Many countries – led by the U.S., Canada and the European Union – quickly responded with sanctions. It was an overwhelming response and included some of the toughest measures in history. The Russian ruble fell 20% in one day versus the U.S. dollar, while investors dumped Russian assets not only to express frustration but to cut ties. Energy companies, BP PLC and Shell PLC, were also the first to pull their investments from Russia.
Read the rest of Alfred’s commentary here >> 2022 March-Portfolio Construction