Market Update: March 2022

‍March was a turbulent month in the investor world. The market was volatile. That means the value of investments moved up and down a lot and often. Sky-high oil prices and central banks adjusting interest rates were heavy blows for the market. Fortunately, prices were ultimately largely balanced out. There were also positive developments. For example, the job market has not been this good in a long time. The conclusion for 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

At the beginning of March, developed markets, such as Europe and the United States, suffered a heavy blow due to the Russian invasion of Ukraine. This price was slightly recovered over 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 American 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 the interest rate for the first time in four years to combat inflation. This led to major movements in government bond prices worldwide.

The yields of money markets in Europe remained on the low side. This is because, unlike the central bank of America, the ECB has not yet adjusted the 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 divides investments across six 'Asset Classes' with passive investment funds spread across various 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. Investing in the medium to long term includes periods where there is no increase or even a decline in the value of portfolios. The longer your plan lasts, the less you have to worry about the monthly results.