Turbulence in the wake of the Ukraine conflict – defensive orientation pays off

After a weak start to 2022, the financial markets were able to stabilise somewhat in February, although the renewed high inflation rates quickly became a spoiler. The market lost ground across all sectors and the swelling Ukraine conflict caused prices to crumble further. With the invasion of Ukraine by Russian forces, the conflict escalated fully, leading to sometimes high levels of distortions and volatility. The sharp rise in energy prices in particular is a major concern for investors.

Central banks are now in a dilemma: higher commodity and energy prices will continue to fuel inflation, but monetary watchdogs will think even more carefully about possible interest rate hikes to avoid risking a recession.

Our defensive stance and hedges have paid off, and we will continue to take this approach.

But see for yourself: