Conflict in Ukraine
February 25, 2022
The recent Russian invasion of Ukraine is top of mind for many these days from both a personal and investment perspective. Without overlooking the very real personal costs associated with a war in Ukraine (we hope this will be limited), we wanted to acknowledge the potential impacts to global economies and financial markets.
The current financial market backdrop is complicated, given the situation in Ukraine and its potential for secondary effects to other economies combined with the current stage of the economic recovery from the pandemic. Prior to recent developments, both fixed income and equity markets were already experiencing negative returns on a year-to date basis. The additional complexity of Russia’s attack on Ukraine may add further volatility, as countries around the world implement sanctions against Russia.
Quadrant continues to focus on downside risk protection for our portfolios. Given expectations of higher Canadian interest rates as the Bank of Canada seeks to remove stimulus that was provided during the pandemic, fixed income portfolios are positioned defensively towards rising interest rates. Our equity managers also continue to keep their focus on downside risk protection as always, as their strategies seek high quality businesses with resilient business models that can weather all stages of the economic cycle, including unexpected shocks. Our managers are keeping a mindful watch on the potential impacts to global economies resulting from this conflict.
One element of any long-term investment portfolio that should be expected – is the unexpected. These unexpected (or not fully expected) events expand uncertainty and volatility in the markets. While volatility is oftentimes unnerving in the shorter term, it acts as a reminder of the importance of a long-term investment view and the value of the 4Ds of portfolio management:
- Diversification
- Discipline
- Detachment and
- Dedication
We will continue to provide further updates as may be warranted.
Quadrant Private Wealth
Suite 720, One Lombard Pl
Winnipeg, MB
Ph: (204) 944-8124
email: inquiries@quadrantprivate.com
web: www.quadrantprivate.com
Disclaimer
This report may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Quadrant Private Wealth ("Quadrant"). Any unauthorized use or disclosure is prohibited. The information herein was obtained from various sources believed to be reliable but Quadrant does not guarantee its accuracy. Neither Quadrant nor any director, officer or employee of Quadrant accepts any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this report or its content. The opinions, estimates and projections contained in this report are as of the date indicated and are subject to change without notice. Certain of the statements may contain forward-looking statements which involve known and unknown risk, uncertainties and other factors which may cause the results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Past performance is not indicative of future performance. The content of this report is intended for information purposes only and does not constitute an offer to buy or sell our products or services.
