The horrors of war can never be understated. Loss of life, grave injury, and the trauma of mortal threats never leaves ones soul. We pray for the well-being of all Ukrainians.
While sobering, as investment professionals we are called at all times to weigh the investment climate with an eye towards our fiduciary obligation to clients to serve them with our best thinking. In that regard, the financial markets are in turmoil given the above noted recent invasion of Ukraine by Russia. History is replete with instances of extreme market setbacks coinciding with military activities (the Iraq war being the most recent).
Frankly, moments such as these have historically proven to be fortuitous investment entry points (Warren Buffet says, “buy when there is blood in the streets”). While it would be appropriate to exercise all due caution on investment strategy given the near term uncertainties, if one’s investment horizon is sufficiently long term in nature, there is no reason to be overly concerned with the long term economic outlook. Further, the recent productivity driving improvements that resulted from dramatic developments in biotechnology (mRNA) and information technology (5G in telecommunications) suggests there is reason for long term optimism.
We welcome all comments and questions.
Robert M. Bilkie, CFA