Sierra’s CIO James St. Aubin Discusses the War in Ukraine, European Stocks on Morningstar Markets Brief (Article 2/17/2023)

Resilient economies are helping European stocks outperform the U.S. market.

The strength in global markets demonstrates what many investment strategists noted a year ago when the war started: Geopolitical events might trigger emotional responses that jolt markets temporarily, but they don’t ultimately change the economic fundamentals on which investment decisions are made, instead, create buying opportunities.

“Knee-jerk reactions can be fraught with error,” says James St. Aubin, chief investment strategist at Sierra Investment Management. “The reaction can be an overreaction, and the results can be counterintuitive” as has proved true in Europe, where investors were initially spooked by the prospect of a calamitous energy shortage that never materialized, helped by a mild winter.



The thoughts and opinions expressed in the article are solely those of the person speaking as of 2/17/2023. The discussion of individual companies should not be considered a recommendation of such companies by the Fund’s investment adviser. The viewer must make his/her own assessment of the relevance, accuracy, and adequacy of the information contained in this article, and make such independent investigations as he/she may consider necessary or appropriate for the purpose of such assessment.