Clients and advisors are keeping a cool head

Despite a fiercely raging war in Europe, there are currently no unusual movements and no increased trading activity observed on the Moventum platform. “We are also learning from the intermediary community that people at the moment are either advised to wait or to make additional purchases at the lower prices”, Pál pointed out.

Shifts from higher-risk equity funds to lower-risk bond funds are not being observed either. “At Moventum, we deal almost exclusively with portfolios where clients are advised rather than make decisions themselves. So therefore, we don’t see a big movement here”, Pál mentioned. In general, advised clients act with less hectic on average and therefore achieve better results in the long term.

“Unlike in previous crises, when markets suffered significant losses, investors are reacting much more prudently this time”, said Gerlinger. “This was already noticeable in February/March 2020 when the pandemic broke out.” Instead of panicking, clients use such phases to make additional purchases – which in retrospect has proven to be the right thing to do.

Short-term trends are not bought by advisors or clients either. “Obviously, there are some investors in the market who are now driving up the prices of defence companies with heavy buying”, Gerlinger remarked. “The short-term impact on energy prices or on agricultural products is not being exhibited at the moment either.” Long-term trends such as increased investment in ESG products or sustainable funds are continuing, as is demand for low-cost ETFs.

Clients and advisors seem to want to keep a strategy that has been assessed and established as successful in the long term. “For investors, the Ukraine conflict does not seem to be the turning point that politics is currently describing”, Pál concluded.

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