Russia/Ukraine Conflict Continues to Drive Uncertainty

The S&P 500 Index suffered its biggest decline on Monday since 2020 as the Nasdaq Composite entered bear market territory. 

The Ukrainian conflict has hit the global economy in a place where it was already vulnerable due to the effects of COVID-19-driven inflation. Higher commodity prices such as the prices at the pump and inflation will weigh on global growth.  

As a result, LPL Research has lowered their forecast for U.S. economic growth to 3.7% from the prior forecast of 4.0 to 4.5 percent.

We expect a greater economic impact in Europe than the United States due to the continent’s reliance on Russian energy. The team at Covenant Wealth Strategies has and continues to favor U.S. equities over international.

As difficult as geopolitical events may be, these periods usually end up representing good buying opportunities for investors.

Our Covenant Wealth Strategies investment team is closely monitoring the evolving situation. We are making appropriate tactical shifts in keeping with our strategies and doing tax loss harvesting where appropriate. It is important to not lose sight of your long-term goals and to maintain your perspective in the midst of market volatility. 

If you have specific questions related to your own investments or financial planning needs, we welcome you to contact us to set-up time to discuss how we can assist you. 

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.