How Will the Conflict in Ukraine Impact Market Volatility? | Insights from our Financial Advisors

The political situation in Ukraine continues to unfold and raise concern for citizens across the globe. As Russia pushes its military advantage forward, Ukrainians continue to courageously defend their homeland. In the news, we see images of fleeing refugees, distressed families, and scenes of a war-torn country. As your financial advisors, we know that this can stir up emotions. That is why we are here to help you process these events while helping you to make the best financial decisions for your future. 

Prior to the invasion, we were already seeing a volatile market but over the past few weeks we have seen this volatility increase. As we continue to monitor each market shift, it’s important to acknowledge that nobody can truly predict market moves. The industry has witnessed broad selloffs followed by enthusiastic rallies – sometimes even within a single trading session. 

What we can confidently predict is that this volatility will likely continue, at least in the short term. Investors will continue to weigh the impact of inflation, increased energy prices, supply-chain issues, and rising interest rates which will always impact the market.  Signs of increased/decreased conflict will also influence market indices.

While this may cause uncertainty for many, we do know that the markets are resilient. If we look at history, we know that significant geopolitical events tend to have a limited impact after six to twelve months. This means that sticking to your investment strategy is usually the best approach. As quickly as markets fall, they can rise again.

Our team at Michigan Financial Companies are true believers in the strength of the American economy and with that in mind, it’s important for us to point out that the current economy indicates a strong promise for overall growth. We remain vigilant in our active analysis and will continue to take measured steps to rebalance portfolios and perform tax-loss harvesting, when necessary.

During times like this, our first priority is to help you remain confident in your long-term financial  plan and to keep your emotions from negatively impacting your goals. 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.  

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. 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.