Private Banking is one of the many industries who knew several changes over the last few months.

Let’s take a look a the situation concretely. Inflation has reached records and it affected global capital markets. US equities and European stocks are both still appreciated even though risk-return ratios changed.

Since the beginning of the corona virus pandemic, all institutes providing macroeconomic data and statistics faced lot of changes. A record of high inflation (9,1% in Europe and 8,5% in the US) hit the market, brutally. No need to explain it, this caused huge consequences.

On the private banking side, HNW and UHNW clients kept investing despite the macro environment threats. However, some preferred some types of investments over others. For example, some have favored equities to bond, other ones chose to invest in low-risk products.

Also, the energy crisis has contributed to increase the Fear Index, and as a result, investors changed their investment strategies and they’re seeking advice among investment experts.

Since the beginning of the year, the Fed and the European Central Bank have been increasing interest rates. This has a indirect impact on private banking. In fact, high interest rates means low funds available for private equity firms.

The market faces big changes everyday, you should be careful about your decisions and analyze the situation before taking any step.