BofA Securities portfolio strategist Derek Harris co-opted the firm’s experts to answer the 15 most asked questions regarding the Ukraine crisis from institutional fund managers. Here we’ll outline the resulting discussion most pertinent to Canadian portfolios.
Economist Mark Cabana expects only minimal effects on central bank monetary policy. The conflict may slow growth in some regions, but central bankers will be faced with inflationary energy prices and are thus likely to continue tightening monetary policy. Analyst Tal Liani believes current events will boost revenue for cybersecurity stocks, as Russia and the West look to disrupt each other’s communications networks. Mr. Liani mentions Crowdstrike Holdings Inc., Zscaler Inc., SentinelOne Inc., Ping Identity Holding Corp and CyberArk Software Ltd. as winners.
Higher oil and gas prices will continue until the conflict abates but BofA believes the crisis will accelerate the move to renewable power. Mr. Blanch believes it will take at least two decades before European countries can halt imports of Russian energy.