March was a weak month for financial markets. Crescit's defensive funds weathered the turbulence relatively well, with Crescit returning -1.5% and Protect losing -3.6% compared to global stock market indices which fell -4.6%. Swedish stocks were particularly hard hit, with falls of -8.5% for large companies and -8.0% for small companies, while the strengthening of the krona further negatively affected foreign assets.

After a strong start to the year, the stock market turned downward, first in the US and then globally. Trump's harsh rhetoric and threatening trade tariffs reduced investors' risk appetite. Volatility markets showed interesting but less powerful movements than usual during sharp stock market declines.

The initial positive interpretation of the Trump administration has disappeared, replaced by uncertainty where the administration seems to prioritize a falling dollar and lower interest rates over stock market development. Despite the decline, stock prices are still historically high, which makes the fixed income and credit markets more attractive. The credit market has not yet been noticeably affected by the stock market decline.

For Swedish investors, the strengthening krona has worsened the performance of global funds, especially US funds, while Swedish stocks fell sharply in March after a strong start to the year. This underlines the importance of flexible management and active risk management.