How do I invest my money in the new Cold War?

Frankfurt With the Ukraine war, the world is splitting into a western and an eastern sphere of power. In this new era with more crises and high inflation, investors and strategists recommend structuring the portfolio differently.

“More investments in Western countries, in shares of crisis-resistant companies, plus a stronger focus on raw materials and energy,” says Heinz-Werner Rapp, board member at asset manager Feri with customer capital of 57 billion euros. What’s new is: “Investors now have to think politically too, so the investment world is shrinking.”

Some big investors are already alarmed. Nicolai Tangen, head of Norway’s sovereign wealth fund with assets of $1.2 trillion, is among the warners. The war in Ukraine and other challenges caused difficult conditions on the capital markets for a long time. “The geopolitical consequences of the war are difficult to predict, but we are probably facing the biggest changes in 30 years,” he said at a hearing in the Norwegian parliament in early May.