Investor Account Access
Investor access to Shareowner accounts and Closed End Funds accounts.
Wednesday 01 March 2023
Investment Talks
March 2023 | In the year since the Ukraine War began, the geopolitical landscape has changed significantly. NATO has re-established itself as the West's foremost defense organization and is expanding as a direct consequence of the conflict, as shown by Sweden and Finland's recent efforts to join. Germany, now one of the biggest defense spenders in Europe, is no longer sitting on the sidelines when it comes to military decision-making. All across the continent, defense spending as a share of GDP has increased significantly. Meanwhile, a surprising number of countries are refusing to condemn Russia and are enjoying new importance on the global stage. Nuclear power and new energy sources are also hot topics.
01 | The West's recent decision to send battle tanks to Ukraine increases the risk of a direct escalation with the West, while the likelihood of a protracted war remains somewhat higher.
02 | As the battle intensifies with a new Russian offensive underway, it is unlikely that either side will decisively gain the upper hand in the near term (4-6 months).
03 | The economic impact on Ukraine has been devastating, with over 5 million people displaced and a collapse in GDP. Estimates of reconstruction costs range from USD $350-$750 billion and are still rising.
Important Information
Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of February 20, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.
The reinsurance industry has existed for over 150 years, and it remains an asset class structurally uncorrelated to traditional investments. To derive the value of cat bonds, Amundi believes the asset class should be part of a strategic, long-term asset allocation. The favorable risk and return characteristics have been demonstrated in the current market environment as well as over the longer term, and there are many favorable market trends that continue to make us constructive on this asset class over the foreseeable future.
Global stocks fell sharply at the start of the week, with Japan’s benchmark Topix index on Aug. 5 suffering its biggest one-day drop in more than three decades. European shares and U.S. stock futures also declined. Meanwhile Emerging Markets stock indices, mostly in Asia (Taiwan and South Korea), fell into the red and currencies that had benefited from high carry trades funded by the yen, such as those in Latin America, lost ground.
Market reaction to Biden's announcement has been muted at the time of writing, with a fall in the US dollar in early trading on Monday (July 22nd), a marginal movement in 10-year US Treasuries, and an upward trend in equity futures. In terms of the implications on markets, the election outcome is still highly uncertain. It is too early to define a potential "Harris trade," but even to have a specific trading strategy for a potential Trump 2.0 administration, as there is ideological uncertainty regarding its goals and policies. There are also significant ideological clashes that the Trump administration would need to address, such as the approach towards China, inflation, tariffs, fiscal expansion and the desire for a weaker dollar.
Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our literature section.
Securities offered through Amundi Distributor US, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer mutual funds, Member
SIPC.
Not FDIC insured | May lose value | No bank guarantee Amundi Asset Management US, Inc. Form CRS Amundi Distributor US, Inc. Form CRS