During a NATO Summit press conference on March 25, President Biden surprised many by announcing that there will likely be food shortages in both Europe and the U.S. as a result of the sanctions placed on Russia in response to the crisis in Ukraine. To better understand if this impact will truly be felt at home and what this may mean for investors, News On with Miranda Khan spoke with Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.
“There are a few issues here and it’s not just wheat,” says Sawchuk. “There are second- and third-order consequences of the actions we’ve taken as far as Russia and Ukraine are concerned. They are going to hurt real people.”
While Sawchuk explains that this will have greater consequences on Europe and a food shortage in the U.S. is not certain, he does recommend that families start storing food that can last them at least 90 days. “If anything else, you’re going to buy it at a cheaper price today than you’ll pay for it in 60 or 90 days from now.”
In addition to potential food shortages, another dilemma facing investors today is inflation. With gas prices now well over four dollars and the costs of other goods and services also skyrocketing, many states are starting to consider providing various subsidies. However, Sawchuk believes that this will do more damage than good.
“You have to decrease demand if you want to bring prices down. But if you subsidize everybody and don’t lower demand, it basically just has more money chasing fewer goods,” Sawchuk explains.
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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.