Western sanctions on Russia⛔ Economic sanctions imposed on Russia by western countries such as the US, Germany, & the UK are being criticized for being too light, & not directed at Putin himself.
How different markets are faring🌎
Oil prices are soaring, as Russia is considered the largest supplier of oil to European countries
The S&P 500 officially entered correction territory (a 10% decline from a recent peak) on Tuesday. It’s now down almost 12% year-to-date (YTD)
Bitcoin has been falling sharply, too, & is down almost 26% YTD
And Russia’s MOEX stock index, well, it’s down almost 30% just TODAY🥵
Needless to say, trading has been suspended on the MOEX
What comes next?🤔 Historically speaking, financial markets tend to recover quickly from geopolitical events. They also tend to see geopolitical events as opportunities (think: 9/11 or the Arab Spring).
General consensus between analysts is that in case matters don’t escalate to a full-blown war, markets won’t experience much other than volatility. War, on the other hand, is a completely different story.
Investors have several options in times of geopolitical uncertainty, but one concept remains at the core: diversification. Some investors might choose to hold less volatile instruments such as bonds or gold. Others might choose to hold cash to capture potential opportunities.