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By Johanna KYRKLUND, Group Chief Investment Officer and Co-Head of Investment at Schroders
The Ukraine crisis highlights the need for investors to be ready for risks.
As ever with geopolitical risk, the stakes are incredibly high and we are faced with seemingly binary outcomes. These risks are unforecastable, clearly nobody can read the Russian president's mind. But nevertheless, we are at a point where the probability of adverse outcomes is significant, even if we think de-escalation of the tensions is the most likely outcome.
When confronted with these kinds of situations, our approach is to identify positions that could help to protect our portfolios if the worst happens. But which we like for other reasons as well.
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