Increase of gasfrom gasfrom question first in general. And then the stock market crashes of many stocks. The war in Ukraine is causing apprehension among Italians, especially small investors. Are our economies really threatened? Here’s how to protect them.
War in Ukraine, the stock market trend: the latest
On Wednesday March 9, Piazza Affari opened up sharply, marking a 2.3% growth. A breath of fresh air after falling to 12-month lows, even recording -13%. Some of the stocks most present in savers’ portfolios, from Unicredit to Eni, lost 7% to 20%.
War in Ukraine, how to protect savings: expert advice
But how do you protect savings from the economic fallout caused by the war in Ukraine? Several industry experts have given some advice to small investors, summarized by the press:
- do not react impulsively, avoiding sell on the emotional wave;
- think long-term, focusing on the medium and long term: markets tend to over-reacting to crises;
- diversify your investmentsbeyond the present moment;
- maintain liquidity as a buffer: for example thegold and gold stocks (because sanctions against Russia will increase energy costs, as well as the price of gold and mining companies);
- Pay attention to dividends: they are considered as parachutes capable of cushioning stock market collapses.
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Ukraine, how will this affect Italy’s GDP? S&P forecasts
He talked about the fallout from the war in Ukraine in relation to different countries Sylvain Broyer, Chief Economist EMEA of S&P Global Ratings. According to him, there is great uncertainty regarding the economic forecast. The current estimate, however, foresees a reduction in euro area growth of 12 points of GDP.
To suffer the most should be there Germany and theItalycompared to Spain for France. Beyond further escalations, however, the current situation should not prevent the European economy from grow by 3.2% in 2022above its potential.
There are several reasons:
- the economy quickly recovered from pandemic;
- employment has reached historic highs;
- the big savings the surpluses accumulated by households and businesses during the pandemic can now help;
- the fiscal stimulus, although in decline, it is still ongoing.
The main problem is rising energy prices, from gas to fuel (by the way, here is the latest information on the price of gas; here we talked about expensive fuel).
The savings accumulated during the two years of the pandemic include those related to the car. According to the evaluations ofAnya (i.e. the National Association of Insurance Companies), the stoppage of traffic imposed by the confinement in 2020 has led to a marked reduction in the number of accidents and therefore also to significant savings on the motor vehicle liability insurance compensation. We are talking about 2 billion euros, which could return to the pockets of motorists, the Government not ruling out the possibility of ad hoc regulations. This was confirmed by the Economy Ministry, responding to a question from Alessio Villarosa to the House Finance Committee.