Morning Report Wednesday 16 April 2014
Russia and Ukraine tensions escalate: does this provide any investment opportunities?
Last night, the Ukraine - Russia conflict escalated and we had comments like "brink of civil war" hitting the newswires. These political situations are obviously awful and we all hope there is no further personal injury or loss of life, but investment wise, they can provide excellent opportunities.
The first and most important thing is not to panic and sell because of headlines. As I have mentioned before, market crashes / bear markets very rarely occur when the press is predicting them. I am no political expert, but do anticipate in 2-3 weeks' time the situation will likely be resolved. Equities in the US last night already voted with their $$ and aggressively bought the Dow up 200 points from its early sell off to close up 89 points. Let's look at some previous conflicts and effects on equities.
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