Market Compass March 2022
- Russia’s invasion of Ukraine adds to the series of tectonic shifts from Covid, the return of inflation and central banks’ search for a smooth exit.
- Energy supply is the key vulnerability. Sanctions have thus far largely spared Russia’s energy sector, but actions against the Russian Central Bank and selected financial institutions may gravely hamper trade while sending Russia deeper into recession.
- We see no rush to buy the dips, waiting for more stability in the geopolitical and energy complexes. We further trim our prudent pro-risk bias, reducing both the Equity exposure in favour of Cash and the Cyclicals and Value bias.