This will be a cold-blooded column. I’m not going to mention the horrors of war, nor delve into the history, politics or morality of what is happening in Ukraine. I’m only going to talk about money and, specifically, how investors should react to such events.
Various financial markets mostly reversed or pared their initial moves. Yes, oil spiked, but futures prices indicate expectations of a short-term blip before things either get ironed out with Russia or President Joe Biden removes blocks to U.S. domestic production and strikes deals with countries such as Iran to produce more crude. The Chicago Board Options Exchange Volatility Inc., better known as the VIX, rose, but most of the increase occurred in the last few weeks. Stock and bond markets outside of Russia showed only mild reaction, with the S&P 500 Index reversing a loss of as much as 2.62% to end 1.5% higher, and inflation expectations have not changed much.