Ukraine and Market Volatility
What to do…
What is unfolding in Ukraine is extremely troubling. As Russia presses its military advantage, it is inspiring to see Ukrainians defending their country. And while the images of fleeing refugees and bombed out maternity wards create strong emotions, as your financial advisor, we’re here to help you keep those emotions in check as it relates to your financial planning.
Markets were volatile prior to the invasion and have become even more so over the past few weeks. As we monitor the situation closely, nobody can 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. Signs of escalation or de-escalation in Ukraine will continue to move the indices.
Amongst the uncertainty, what we do know is that markets are resilient. In fact, history tells us that major geopolitical events tend to have 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.
We are true believers in the resilience of the American economy. We also feel that the underlying strength of today’s economy still bodes well for overall growth. This doesn’t mean that we are passive. We are taking measured steps to re-balance portfolios where necessary and doing some tax-loss harvesting, if appropriate.
In uncertain times, our highest priority is helping our clients keep emotions out of investing and ensuring you remain focused on your long-term financial goals. We are on top of the situation and will continue to monitor events. Please do not hesitate to reach out to us with questions, concerns, or for some reassurance. We are here to support you and your family.