In July, the dozzi investment committee met to discuss the changing economic environment and how this may impact your portfolio.
While we undertook considerable analysis on all things relating to your investment strategy and portfolio allocation, this update for July’s insights focuses on historical lessons from past conflicts and the impact on global markets, particularly given its relationship to today’s environment.
Incorporating our own perspective on the current conflict between Russia and Ukraine, we consider our current Tactical Asset Allocation for your portfolio to determine if any changes are required.
While we continue to consider all economic activities including rising interest rates, inflation, and the cooling of property prices, it is the march towards winter in Europe that has the potential for considerable impact, further destabilising markets.
THEMATIC: Europe – It’s Getting Worse, Be Prepared…‘Winter is Coming’ a popular phrase coined by the TV Show, Game of Thrones, seems to be a suitable place to start this conversation. It appears all but certain that Russia will use the coming opportunity of cold weather to restrict gas supplies and place significant pressure on the Northern Hemisphere which rely heavily (some nations are entirely dependent) on Russia’s gas supplies to stay warm. Given the backdrop of already heightened inflationary fears and geopolitical tensions, this has the potential to cause considerable negative impacts on markets. Some of the focused discussions during this month’s Investment Committee meeting included: A plan to respond to the increasing threat posed by the Russian/Ukraine conflict. Should NATO become directly involved in a conflict, how will we respond in terms of reducing our growth / defensive split within our portfolio construction. Worst case scenario unfolds (an all-out conflagration), how would we respond and what action would be taken…
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