Stock market volatility: Russia-Ukraine

The stock market has been impacted by the events unfolding in the Ukraine. Explosions have been reported in Kyiv and at this point, it's not clear how extensive the attack is, or what the ultimate objective is.

As is always the case in similar situations, you'll find that everyone is now a learned expert of the psychology of Vladimir Putin and the politics of the Eastern Ukraine. We at Betterworld do not profess this expertise. The EU, UK and US governments have said there will be harsh sanctions aimed at harming the Russian economy, but military involvement by NATO forces has been ruled out so far. It's unlikely that sanctions will have any impact on Putin's actions over the next few days. He will have been planning this move for a long time and is unlikely to be deterred. While sanctions will impact Russians, we'll need to see the details to assess the wider impact.

You might be wondering what that means for you

Unfortunately, world events, whether a financial crisis or a military conflict, do occur, and they inevitably result in investment volatility. The impact upon markets will be extremely volatile, compounding what has been a poor start to the year for core equity and bond markets.

However, beyond the initial reaction, it's harder to forecast what happens next. As I write the FTSE 100 is actually up 2.17% which shows how febrile markets are at the moment. However, it's worth remembering that your financial plan has accounted for this: your investments are invested in a diverse range of assets, which will have limited the fall. For now, trading short-term moves may be dangerous as markets may well over-react and if dealing in funds, it's not known where the markets will be by the time they trade. It really is a case of sitting tight I’m afraid.

If you have any questions or queries then please remember that you can contact me at any time either via email or phone.