The terrible geopolitical situation has created a perilous situation, and all asset classes are now pricing in highly uncertain knock-on effects of the worsening conflict and stricter-than-expected sanctions against Russia for the world financial system, energy markets and agricultural commodities.

With such dire outlooks, as portrayed by the daily news flow, it is easy to underestimate the resilience and adaptability of markets.

History shows that it is exceedingly rare for equities to fall into a recessionary bear market without an advance warning from leading fundamental indicators.

An exogenous shock is usually absorbed relatively quickly, but current risk remains elevated.