After weeks of unrest and uncertainty, Russia officially invaded Ukraine early Thursday morning, resulting in significant market volatility. To help you better understand how this conflict will impact your portfolio, InvestmentNews spoke with Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.
“This Russia-Ukraine story has been in the making for a little while and when we saw that the markets were likely to turn, we got out ahead of it and started reducing equity exposure about a month ago,” says Sawchuk.
Sawchuk believes that the current volatility in the stock market is a result of several factors that have already been in motion for years. Supporting this notion is the fact that the S&P 500 was already down more than 11% this year before Thursday’s drop in response to the Russian invasion of Ukraine.
“In 2021, more money went into the equity markets than the previous 10 years combined,” he explains. “People had stimulus money, unemployment, payment protection programs, and all that money went into the markets and the economy.”
One asset class that Sawchuk thinks will be greatly impacted by a war between Russia and Ukraine is oil prices. “We were on trajectory for $5 gasoline before Ukraine, and now we’re on a path to $6 or $7 a gallon for gas,” he explains. “If this [Russia-Ukraine situation] doesn’t resolve itself in short order, we could see oil push to $150 a barrel, and that’s a recession starter.”
Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.