Why inflation matters more than war

Nuclear war isn't the kind of risk that investors can usefully take into account when building a portfolio. Inflation and stagflation, however, are.

Ukrainian soldiers near a bombed-out school building
The invasion of Ukraine is horrifying – but it’s unlikely to move markets in the medium term
(Image credit: © REUTERS / Alamy)

“Buy on the sound of cannons” is a famous investment adage, but it’s not well supported by history, says Stefan Hofrichter of Allianz Global Investors. Yes, a look back at 13 geopolitical crises, starting with the Cuban missile crisis in 1962, shows that stocks have on average tended to do better after the onset of a global crisis and safe-haven assets have tended to do worse. But that average disguises a lot of variation.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.