War, Conflict & Long-term Investing

About This Episode

All of us at Tulett, Matthews & Associates are shocked and saddened by the human and emotional toll the conflict is inflicting on the Ukrainian and European populations.

With heightened investor anxiety, we have recorded this episode to shed some light on how the stock markets have reacted to past wars and global conflicts and what it might mean for current long-term investors.

In this episode, Marcelo and Keith talk about geopolitical risk/shock in investing. When we’re facing major geopolitical events, war, health crises, or a recession, many investors’ immediate reaction is that we’ve never seen something like this before. We hear – this time is different. Unfortunately, that often leads investors to make short-term, reactive decisions that ultimately harm their long-term investment plan.  

We hope that today’s episode helps you with perspectives on long-term investing.

Key Topics:

• Introducing today’s topic (0:55)
• Why we’re talking about the implications of the Ukraine war (2:41)
• Geopolitical risk is not a new aspect of investing (3:10)
• The dangers of the “this time is different” concept (4:05)
• How social media feeds into our fears (7:17)
• Trends in stock market reactions to major geopolitical events (8:31)
• Distinguishing between a geopolitical event and a recession (10:28)
• Russian equity exposure and portfolio construction (12:49)
• How investment organizations are decreasing their exposure to Russian equities (13:43)
• Getting through these crises and preparing for the future (15:14)
• The lifeboat drill we use with our clients (16:11)
• Your capacity and emotional ability to bear risk (17:25)
• Investment philosophy as a central pillar of your investment plan  (20:01)
• The key to ensuring your portfolio can weather any storm (21:29)
• Our main takeaways for investors (23:19)
• And much more!