Following the suggestion of possible Russian oil penalties by senior U.S. officials, the risk-off mentality has taken hold, with crude and other commodities surging. That comes as the globe grapples with an ever-worsening humanitarian catastrophe in Ukraine, where the Russian invasion has now been in place for 12 days and more than a million people have left the conflict.
When faced with unexpected and deadly geopolitical upheaval, here is some wartime investment advice from Berkshire Hathaway CEO BRK Warren Buffett, taken from an interview conducted in 2014, just before Russia invaded Ukraine.
In the event that we were to enter a big conflict, you can be certain that the value of money would plummet – something that has occurred in practically every battle that I am aware of.” “Holding money during a conflict would be the absolute worst thing you could do,” he said.
The year was 1942, and “macro variables were not looking good,” according to Buffett, who maintained that investors would “be a lot better off owning producing assets for the next 50 years” than holding bits of paper.
Mr. Blonde, the Stuck in the Middle blogger, has a call of the day for people who aren’t scared to put a little money to work. He gives a stagflation playbook for those who aren’t afraid to put a few dollars to work.
Fears of increasing inflation and declining GDP, which was exacerbated in part by the COVID-19 epidemic, were weighing on the minds of some investors even before the war in Europe triggered a jump in commodities prices. Although the battle may be resolved, there is a possibility that “harm has already been done.” Mr. Blonde recommended that you “be protective and minimally risked.”