Market update: March 2022

‍March was a turbulent month in the investment world. The market was volatile. This means that the value of investments moved up and down a lot and often. Soaring oil prices and central banks adjusting interest rates were heavy blows to the market. Fortunately, prices were largely brought back into balance in the end. This was because there were also positive developments. For example, the job market has not been this good in ages. The conclusion from March was clear: shares performed better than bonds.

Best performing fund in March: Northern Trust World Custom ESG Equity Index Fund +3.72%

The Investment Update

In early March, developed markets, such as Europe and the United States, were hit hard by the Russian invasion of Ukraine. This price level recovered slightly during the course of the month, partly due to the expected increase in earnings from the technology, energy, and commodities sectors, among others.

Shares in emerging markets had a tough time in March. This was partly due to the dip in Chinese share prices, the increasing number of COVID infections in China, and the resulting lockdowns. The US stock exchange may also delist a number of Chinese shares. This had negative consequences for the prices.

In the United States, the Federal Reserve, the central bank, raised interest rates for the first time in four years to combat inflation. This led to major movements in government bond prices worldwide.

The returns on money markets in Europe remained low. This is because, unlike the central bank of America, the ECB has not yet adjusted its interest rate.

Important Factors for your Investments in April

- Developments concerning the war in Ukraine

- The energy price

- Extended lockdowns and COVID measures in China

‍What does this mean for my plans?

The results in March prove the importance of diversifying investments. Because Vive spreads investments across six 'Asset Classes' with passive investment funds that are spread across different companies, countries, and sectors, a positive result was achieved on average. Some portfolios experienced a slight decline. Given the market conditions, that is a good result. Mid- to long-term investing includes periods where there is no increase or even a decrease in the value of portfolios. The longer your plan lasts, the less you need to worry about the monthly results.

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