How investors should react to the higher risks from Corona & Co

Frankfurt Investors need to rethink. Because of the corona crisis and the Ukraine war, the financial markets are entering a completely new phase that entails higher risks. In this phase of the “Great Transformation”, not only investors, but also companies and consumers are forced to adjust to less planning certainty, say the experts at Union Investment in their most recent “White Paper Risk Management 2022”.

In return, the decades-long phase of the “Great Moderation” is finally history: the experts use this to describe the period between 1985 and 2020, in which a combination of beneficial structural changes prevailed – with deregulation of the financial markets, reliable monetary policy, low inflation rates and easily predictable, constant growth rates. Since this world no longer exists in this way, you have to look for new strategies in order to be successful, according to the experts at Union Investment.