Russia’s invasion of Ukraine has thrown policymakers, companies and markets into an uncertain world.
Although the Russian invasion has shaken 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 turbulence. Share markets around the world had a strong rebound at the end of last week.
The US, UK, EU and Canada have 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. Let’s see how the market would react this week.
We can look back on history for guidance, but nothing is ever guaranteed – the past is not a predictor of the future. However, sticking with your saving & investing strategy and remaining disciplined can pay off, as sharp market moves due to geopolitical events are usually just temporary.
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