In a war context, much what figures below is extremely secondary in nature.
Macro and geopolitical factors sit firmly in the driving seat. During the first half of February, stocks were pulled lower over inflationary concerns. At the end of the month, the dramatic escalation of Russia’s standoff with the West added to market headwinds. The worry is that the war over Ukraine (and sanctions imposed on Russia) could spill over to other conflicts and further intensify current market concerns such as supply chain disruptions and inflation. Hopes that the war might prompt a less aggressive central bank policy tightening did, however, enable stock markets to reverse some of the negative performance accumulated during the month, closing February down -2.5%. Healthcare (-0.5%) lived up to its safe haven status, significantly outperforming the broader market.
Did you know that clinical care is estimated to affect only 20% of our health well-being?
The conflict in the Ukraine is the first war in a fully interconnected world, wired more closely than ever before by trade, supply chains and financial markets. As such, while the drama is occurring within Ukraine’s frontiers, the consequences of Putin’s “special military operation” are being felt across the globe.