Asset Class Returns As At 28 February 2014

February saw a lot of movement of funds. Looking at that month alone, there had been a large mobilisation of funds from those on the sidelines. Even commodities surged after a sombre 2013. This was the surge that could very well start the deluge of idle funds making them to go to work. Unfortunately the Ukraine situation kind of put a spanner into the works. The key now is to see if that is enough to derail the funds to flee completely and stay sidelined again. My view is that the incursions into Crimea and Ukraine by Russia will result in trade sanctions rather than an outright war by NATO/US against Russia. Obama will be loathed to send in any troops and certainly not against Russia. Once the sanctions are announced I believe some stability will be seen in the markets.

majorasset.03mar2014

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