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Laxman Pai, Opalesque Asia: Global families are facing unprecedented complexity as the geopolitical unrest magnifies the economic consequences of the Covid-19 pandemic. Over the last 12 months, businesses have been disrupted and markets rattled, and inflation has surged.
According to the Julius Baer 2022 Family Barometer the experts reported a sharp increase in inquiries from families who want their assets to be more geographically diversified.
After a long spell of peace in Europe, the sudden outbreak of war in Ukraine provided a stark reminder of the risk of geographic concentration. Indeed, as Yves Bonzon, Julius Baer's Chief Investment Officer, recently told clients, "financial markets are no longer immune to geopolitical affairs; the risk of capital confiscation has risen significantly since the start of the war in Ukraine".
And for families with interests on multiple continents, the war has consequences far beyond the outright loss of local assets. On the one hand, higher oil and commodity prices have boosted the economies, currencies, and equities of countries rich in natural resources, although surging inflation is a concern for central banks globally.
On the other hand, food export bans and import tariffs complicate the outlook elsewhere, leading to what Diego Wuergler, Head of Investment Advisory at Julius Baer, has called "a global financial environment that is challenging to navigate".
"The experts we consulted for this report suggested tha...................... To view our full article Click here
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