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The Escalation in Ukraine Tensions – Implications for Investors
The attached note looks at the further escalation of the situation in Ukraine. The key points are as follows:
- 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.