Market Volatility over Ukraine Crisis 'Will be Brief'
The retreat by global financial markets triggered by investors’ nervousness over the escalating crisis in the Ukraine will prove short-lived, according to the chief of independent financial advisor deVere Group.
Although the situation has intensified, with the US admitting that Russia now has control of Crimea, deVere’s founder and chief executive officer (CEO), Nigel Green, said that he expects the markets to recover quickly.
“There has been some volatility in the capital markets as a result of the political and military uncertainty in Ukraine – which have, naturally, exacerbated concerns about the country’s fundamental economic weaknesses,” Green added. “However, I fully expect this to be a short-term phenomenon.
“I believe that this tumble will be judged by history as a ‘bump in the road’ as markets will recover quickly. I’m not worried that we are about to slump into another global recession as a consequence of the deepening crisis in Ukraine.
“The situation will perhaps fuel some of the concerns regarding emerging markets [EMs], although I expect the problems will, in the most part, be limited mainly to Russia and Ukraine.
“As the situation regularises, in whichever form that might take, and the world becomes accustomed to the new and/or existing realities, investors are likely to classify the Ukraine-Russia stand-off as ‘a local issue’.”
“Global financial markets will then return to focusing on key fundamentals, such as the improving trend of US economic data, than to what is happening in Ukraine.”