Market Volatility and Ukraine One Month In
By Jeffrey Meenes, CFP®
(Published Date March 24, 2022)
What is unfolding in Ukraine continues to be extremely troubling. As Russia presses its military advantage, it has been inspiring to see Ukrainians defending their country. And while the images of fleeing refugees, and bombed-out maternity wards and theaters create strong emotions, as a financial advisor, my job is to help you keep those emotions in check as it relates to your financial planning and investments.
Markets were volatile prior to the invasion and have become even more so one month into the war. As we monitor the situation closely, nobody can consistently predict market moves. We’ve seen broad selloffs followed by huge rallies – sometimes within the same trading session. Volatility will most likely continue, at least for the short term, as investors weigh the impact of rising inflation, energy prices, supply-chain disruptions, and interest rates/the Fed. Signs of any significant escalation or de-escalation in Ukraine will likely continue to move the indices up and down.
Amongst the uncertainty, what we do know is that markets are resilient. In fact, history tells us that major geopolitical events tend to have a limited impact on markets after six to 12 months. So, sticking to your investment strategy may be the best approach. As quickly as markets fall, they can also go back up.
I am a true believer in the resilience of the American economy and financial markets. I also feel that the underlying strength of today’s economy still bodes well for overall growth. This doesn’t mean that we should be passive. This could be a good time to take measured steps like rebalancing your portfolios where necessary, tax-loss harvesting, or other timely strategies as appropriate.
In uncertain times, our highest priority is helping our clients keep emotions out of investing and ensuring they remain focused on their long-term financial goals. As we continue to monitor events, please do not hesitate to reach out to us with questions, or concerns, about how Meenes Wealth Partners might be able to help you and your family.
This content is developed from sources believed to be providing accurate information, and provided by Meenes Wealth Partners. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.