Monthly Archives: March 2022

The Fight Against Inflation

Market Memo

March 2022 – By Kyle Rohrwasser

On February 21st Putin announced that Russia would recognize the sovereignty of the two western republics of Ukraine, which was immediately met with NATO sanctions. Quickly following, Russian forces moved deeper into Ukraine on February 24th. Within the week, technological, financial, and political sanctions had been handed out with intent to punish Russia for the occupation of Ukraine. See tracking sanctions against Russia here.

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Oil Shock?  Not So Much

March 2022 – By Bob Veres

If there is one significant fallout that most economists expect to land on American consumers as a result of the war in Ukraine, it is higher gas prices.  Prices tend to reflect supply and demand, and if there are sanctions on Russia’s ability to export oil, that will reduce supply without any anticipated change in demand.  It is estimated that roughly 2.3 million barrels a day of Russia’s 4.6 million output flows to Western nations.

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Current Events & Market Volatility

March 2022

We are all watching the many recent events which are impacting the markets.  The military conflict unfolding overseas triggered significant economic sanctions and have increased market volatility.  Additional impacts due to rising energy and food prices along with continued supply chain issues are likely. 

Volatility and risk are part of investing and can test an investor’s resolve.  Whether the source of the volatility is from geopolitical events, inflation, or even a global pandemic, we maintain the belief the best approach is to remain invested, diversified, and focused on the goals and the long-term horizon.  Although oftentimes our emotions are pushed and our fears fueled, staying tethered to a structured fundamental strategy while keeping our goals in mind is the very ballast that keeps us from tipping too far one way or another, leading us toward decisions that can shipwreck our plans.

Turbulent markets can often present opportunities to adjust the portfolio’s tactical exposure within specific sectors, allowing reallocation to favored spaces at attractive entry points.  Our research process includes discussions with experienced fund managers to review the investment outlook given current events and to identify areas with positive risk and reward attributes.     

The team at Vantage will continue to monitor and research as we look for opportunities created by the recent volatility.