Russian invasion of Ukraine creates turmoil in the economy
Economists are starting to predict more economic strains as the Russian invasion of Ukraine continues. Some of the effects already felt in the weeks prior.
Some of the effects include: the stock market in fluctuation, struggles with inflation continuing, and gas prices rising.
Certified Financial Planner Becky Walen says, "We’ve all seen our prices go up at the pump in filling up our vehicles and that’s likely to continue. We haven’t seen gas prices this high since 2014.”
Other service prices likely to be increased too in the chain reaction. Gas Buddy Petroleum Analyst Patrick De Haan says, “Diesel prices will go up, jet fuel will go up. And that means logistics, transporting goods, and all of those prices will go up. Airline tickets could go up, the prices of anything delivered by truck whether it’s a goods to the grocery store will see an increase."
But for those who are investors or are worried about their retirement funds… What are the next best steps when facing an uncertain market.
Walen says, "It’s just really important to stay the course and unless your goals have materially changed, maintaining asset allocation and your existing stocks and bonds is imperative."
Staying in the game can help you continue to increase your funds instead of selling out. A trend seen when the markets fell during the height of the pandemic. "With that markets responded so briskly that if an investor was to have sold and gone to the sidelines for example they really lost out”, says Walen.
And as for spending preparation. The need to scale back on spending doesn’t seem to be necessary quite yet. Walen says, “Unlike early in the pandemic for example it’s not a sweeping across the board tacked on everyone. It may be felt a little here and there."