March was a clearly more challenging month, with several risk factors converging and putting pressure on the markets. The US was characterized by a downward sawtooth movement, while Europe and Sweden fell sharply, resulting in high volatility. Risk appetite quickly deteriorated in an intense news flow, making active risk management crucial.

Middle Eastern geopolitics moved from a latent risk to a direct market driver, with rising oil prices affecting inflation expectations and interest rates. Expectations of interest rate cuts were pushed forward and both interest rates and equities moved more erratically in a turbulent climate.

The fixed income market was characterized by rising long-term interest rates and increased volatility, while short-term interest rates were more stable. 

Volatility rose significantly, making protection more expensive but creating opportunities in short-term movements. At the same time, demands for discipline increased in a market where rapid reallocations amplify movements. Energy prices developed strongly.

Ahead of April and Q2, geopolitics, energy prices and inflation continue to dominate. The uncertainty points to a continued volatile market with the oil price becoming a key risk indicator. In this climate, focus on active risk control, flexibility and a robust investment framework are crucial.