Russia, Ukraine, & How It Affects Your Investments

In a press conference on January 19th of 2022, when questioned about Russia’s threat to invade Ukraine, President Biden said that "It's one thing if it's a minor incursion and then we end up having a fight about what to do and not do.." A reporter then asked, "Are you effectively giving Putin permission to make a small incursion into the country?" Our president laughed and said "Good question. That's how it did sound, didn't it?" This was a clear green light from the President of the United States and directly led to Russia's movement into Ukraine, last night.?

How does that movement affect your investments?

1. The market anticipated this incursion/invasion and has already declined somewhat. While the market has corrected by double digits, our firm, as of close of business yesterday, was even for this year. We believe that all the “bad news” is already built into the market’s pricing, and that within a short amount of time– weeks, not months- the market should regain its footing and recover.

2. This incursion into Ukraine forces our NATO partners to end their dependency on Russian imported natural gas (a really great thing)! Finland buys nearly 100% of its natural gas from Russia. Germany gets approximately 60% of its natural gas, Italy gets approximately 40%, you get my drift. Russia is going to lose customers, and money, long-term.

3. When President Biden took office, the United States of America was completely energy independent, and one of the largest exporters of gas and oil in the world. Just as quickly as the policies of our current presidential administration slowed down production of petroleum products, they can recover to their former production levels. This would provide literally hundreds of thousands of new highly paid jobs within a short amount of time and provide fully for Europe's energy needs going forward. That's the silver lining for the USA in this sad tale.

4. The Ukrainian government announced that, as of this morning, dozens of Ukrainians have been killed by Russian forces. Every death is a tragedy. But, context is important. Through February 22nd of this year, 82 homicides have occurred in one American city – Chicago. In 2021 more than 800 people were murdered in Chicago. In other words, the approximate 40 people that have died in Russia's invasion so far, is dwarfed by the liberal-led violence that's going on in our nation’s streets, today! Ukraine is not a NATO member, so NATO will not come to Ukraine’s rescue as long as this remains a “minor incursion”!

In closing, over the past two weeks markets’ have declined, but that decline is likely to be short, and presents not only a buying opportunity now for investors, but also may force policy changes by the current presidential administration that reawaken America's energy independence and make us a supplier of choice to Europe. A lot of good can come out of this situation for our economy and your investment assets. Take advantage!

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C. Kelly Buckley, MBA, CFP?

Managing Principal

Spectrum Financial Alliance Ltd. L.L.C

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Full listing of all disclosures: (bit.ly/3lGX3mM)?