Who We Are
Our Founding Principles
What We Do
Our Financial Planning Process
Our Comprehensive Services
Our Investment Process
Covenant Wealth Portal Login
CWS Vault Checklist
Covenant Wealth Portal Demo Video
Account View Login
Covenant Wealth Strategies Blog
Stone Barn Times
New Client Kit
Timely and Relevant News: SWIFT Sanctions and Russia Central Bank Restrictions
The U.S. has cut off major Russian banks from the SWIFT secure messaging system - severely limiting the banks’ ability to participate in international transactions, while advancing measures that would make it difficult for Russian’s central bank to outflank sanctions to support its financial system.
The sanctions’ were immediately felt with offshore trades in the Russian ruble declining sharply, a downgrade of Russian debt by one rating agency from investment grade to junk status and lines forming at Russian ATMs to withdraw currency.
The economic pressure will likely push Russia toward recession and will put considerable pressure on the stability of the Russian banking system.
The sanctions have also put pressure on dollar funding markets and central banks may need to step in to help provide liquidity. The European Central Bank (ECB) governing council is meeting on March 10
and will likely communicate a less hawkish stance as rising risks from the East could put a damper on Western Europe’s growth path. Within the U.S., the Fed will be less likely to “shock and awe” the market with an overly aggressive hike on March 15-16
We continue to remain more cautious on European equities and expect sustained upward pressure on commodity prices, possibly keeping inflation levels elevated into the back half of the year.
While the U.S. is making a significant step in supporting Ukraine, it does little to mitigate the humanitarian crisis on the ground. Our hearts and prayers go out to the
victims of this war and aggression.
Our Covenant Wealth Strategies investment team is closely monitoring the dynamic 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
to set up time to discuss how we can assist you.
Securities and advisory services offered through LPL Financial, a registered investment adviser, member FINRA/SIPC.
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.