I expect the markets to continue with the volatility we’ve seen since the invasion, however, I am still bullish on the U.S. stock market. If you have any questions, please contact me.

The Markets and Economy

• The world’s supply-chain issues are being compounded by Russia’s invasion of Ukraine. The conflict is bottling up vast commodity exports on both sides sending prices higher. Adding to the challenges, major airlines have suspended flights to Russia.
• Fed Chairman, Jerome Powell said he will propose a quarter-percentage point interest rate increase at the central bank’s meeting in two weeks. There had been speculation the Fed would seek a half-percentage point increase. The chairman cited Russia’s invasion of Ukraine as the main reason for the lesser increase. Powell also said he expects the war to boost inflation further challenging the Fed’s fight to control higher prices.
• Western nations have placed economic sanctions of a historic scale on Russia. The move reverses 30 years of post-cold war engagement and hobbles Moscow’s financial system. Western companies are pulling back on their investment in Russian businesses too.
• Russia’s crude oil and natural gas production generates more than 40% of the total revenue for the government. Russia is the number 2 global producer of natural gas and number 3 global producer of crude oil. The U.S. is number one in both categories.
• The S&P 500 and the Nasdaq have lost 8.2% and 12% respectively over the first two months of 2022. That is nothing compared to the losses the Moscow Stock Exchange has experienced since the invasion of Ukraine. Over the past two weeks, Russia’s major exchange has lost approximately 62% of its value.
• Singer Neil Diamond is the latest artist to sell his catalog and recording rights. The deal with Universal Music Group for an undisclosed amount, puts the Sweet Caroline singer in good company along with other performers such as Bob Dylan, Sting and Bruce Springsteen.