Ekonomikanalen

Ukraine: Chief strategist downplays market risk

The stock markets drop following the Russian invasion of Ukraine. However, Handelsbanken strategist Mattias Sundling says substantial long term declines are far from certain.
”The market is good at discounting”, Sundling says.
Also, Russia has had a limited role in the world’s economy for the past few years. The exception is the energy markets, where there are reasons for worry.
Sundling does not think this will cause the American central bank, Fed, to abandon the plans to raise the rate. It is simply not possible to ignore the inflation. However, there might be fewer raises than planned. It all comes down to balance.
The risk of recession following this situation is low, according to Sundling, but cannot be ruled out.
Mattias Sundling's concluding advice is:
”I won’t advise people to reduce their stock exposure or sell of their shares right now.”
Host: Petra Bergman