What Does A Russian Invasion Of Ukraine Mean For You And Your Portfolio?
It appears that things with Russia and Ukraine have escalated beyond the hope of initial diplomacy.
The markets so far have not reacted in a positive way as things had become more and more tense, and certainly will not like what we are seeing as Russia appears to move to strike Ukraine.
What does this mean for you and your portfiio?
Things are uncertain, and markets hate uncertainty.
Markets hate uncertainty.
Nobody knows what is happening and what exactly is going to happen in Eastern Europe.
The markets are falling on this uncertainty. It is that simple.
If this continues to escalate, there will be effects on the world economy for sure. What does that mean for us and our markets? I wish I could tell you something other than we just don’t know.
Things could get worse. But then again could also get better quickly. If things improve, then markets will like it and it may prevent larger corrections.
Markets hate uncertainty. That’s the why of why they are falling.
Now here the what to do.
Don’t panic!
Please do not panic. We don’t know what is going to happen, so don’t make any drastic moves.
Don’t panic sell everything. Don’t cash out.
If you cashed out in March of 2020, then you were really paying for it by the fall. If you cashed out in 2008, then you were hating life a few years later.
We don’t know what is going to happen.
There is a possibility that conditions will improve and everything will be fine.
Please don’t panic.
What you should do is follow your Financial Plan.
Follow Your Financial Plan, but take opportunities.
Follow your Financial Plan.
You should have a good plan in place. If you do, then just keep going.
If you don’t let’s talk about that, click the button below to get started.
But follow your plan, don’t make any big changes to what you are doing and sit tight.
Nobody knows what is going to happen. Hopefully it all gets resolved quickly and relatively peacefully. If that does happen then the markets will like it and we will see a bump. If things continue to worse then we can expect further deterioration of the markets and world economy.
Either way, the worst thing you can do is something drastic.
We always play for the long term with any Financial Plan. We will always do what is the best thing for the long term.
I would suggest that if you have extra money, be ready to put it to work. If the markets do enter into a large correction, then there will be buying opportunities. If it gets to that point, then it could make sense to fully fund IRAs, or frontload 401k contributions or put money into your brokerage accounts. Everything needs to fall within your Financial Plan, but there will be opportunities to maximize long term gains.
Let’s make sure you are ready for uncertainty.
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