doubt global equities and how to defend savings

The Ukrainian crisis scenario is truly terrible news for the world that believed it was finally coming out of the hateful Coronavirus pandemic.

The Russian invasion of Ukraine disrupts the cards of international geopolitics, but also those of the economy. Equities threaten to collapse, investors are confused and think they will flee, but savings are also at risk from inflation. A heavy and convulsive situation therefore in which it is very difficult to orient oneself.

The first doubt concerns the actions. The global stock market took a thud on news of the Russian invasion, but then it rebounded in an almost inexplicable way. In reality, however, the actions move in a way of their own that is often very different from people’s moods. Making forecasts on the stock market in the current state of affairs is obviously very difficult however, however serious the crisis in Ukraine is, it may well be that the market actually reacts substantially neutral to these sad events.

Global equities paradox

In fact, if an international crisis such as the one between Russia and NATO is certainly bad news for the markets, on the other hand it fares away from what really scared the stock exchanges or the Fed’s rate hike. In a climate of war like this, the Fed has a new pretext to keep interest rates at zero and therefore to allow the stock market to continue growing. Consequently, if obviously there is a right nervousness and an understandable concern regarding the shares, it is not excluded that despite the gravity of the crisis rather than a collapse we can witness momentary turbulence.

Rampant inflation

At the same time, however, the Ukrainian crisis amplifies the effects of the already devastating inflation. This for the poorest families means the real anguish of not being able to make ends meet, but in general for everyone it means a strong reduction in purchasing power and the need to protect their savings. Italians in this period are moving towards postal savings bonds which are in fact an easy to understand tool and suitable for most. There is also obviously no lack of alternatives but which are often quite complex for those not accustomed to the world of investments. Consumer protection associations particularly warn against certain investment plans proposed by banks and financial intermediaries.

Read also: Interest-bearing bonds: the new 5 x 5 arrives, so you protect your savings from inflation

Read also: Superbonus 110%: the costs decree signed, doubts about the price analysis

Each product can be right as long as you understand it and above all as long as you don’t get caught up in the wave of emotion. But the Ukrainian crisis can also mean new problems on the supply front and in fact circles fear the risk of empty supermarkets. This is above all because the movement of the trucks with the expected increases in the gasoline front becomes objectively more difficult.

–