In The News: Ukraine
Q: So what to make of the situation in Ukraine?
A: In a word: Uncertainty
As we know, uncertainty is not the friend of the market. However, geopolitical instability in Europe and Asia is not uncommon – nor is this the market’s first saber-rattling stand-off. But when Russia’s involved, it’s easy to harken back to 1968 when Russia didn’t care for the pro-democracy rallies in Prague which lead them westward to “protect their interests.” And now, 45 years later, or so, we see unidentified troops – though the world knows them to be Russian – surrounding key military and government installations in Crimea, the southern peninsula of Ukraine.
Is it a prelude to an armed conflict? Hopefully not. Is it more of a geopolitical risk than an economic one? Too soon to tell in my opinion. For now, let’s call it another degree of uncertainty for the market to absorb. It’s not the first in 2014, and it likely won’t be the last.
