Banking stocks were the biggest decliners in Europe on Monday, sinking to the lowest in two months, after the U.S. and EU ramped up their measures against Russia by blocking some of the nation’s banks from the international SWIFT transaction messaging system and moving to target the central banks foreign exchange reserves.
We acknowledge that our longs in Europe and in banks are not likely to perform as long as this crisis dominates the headlines, JPMorgans strategists said. Still, on anything longer than a one-month horizon, banks and Europe should continue to be seen as fundamental overweights, the strategists added, especially if commodity flows are not cut from Russia.
UBS Global Wealth Management echoed the sentiment on Monday.
We caution against hasty shifts in positioning based on events, strategists led by Mark Haefele wrote.
We think it is important that investors maintain a calm stance and keep a long-term perspective, they said, advising investors to diversify across regions, sectors, and asset classes, use commodities as a geopolitical hedge, and position for U.S. dollar strength.
[More: Gold emerges once again as rock of stability amid market unrest]
The post Selling stocks now entails too much risk: JPMorgan appeared first on InvestmentNews.
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