Geopolitics jumps to top of investor concerns
The war in Ukraine carries on and is now well into its third month. It has been contributing to inflation, market volatility, and recession fears. Investors are concerned about both the humanitarian crisis and potential economic fallout. Should markets decline further, investors may look to make changes to their portfolios.
Geopolitics jumped 13 percentage points since the last Investor Sentiment survey, making it the second biggest investor concern. Although optimism in the US economy increased slightly, investors are seeing several negative economic impacts of the war. These include higher energy prices (70%), an increase in cyberattacks (67%), more global instability (66%), and increased risk of a recession (62%).
In response, most investors are considering taking action on their portfolios: 30% said they would shift their investments to different sectors, 26% would add investments, and…