Global markets are feeling whiplash as Europe severs financial ties to Russian gas and oil providers. The race to renewables is on, but will we get there before a major economic slowdown? In today’s weekly recap, Ted dives deeper into the war for our energy future and shares his favorite pick for weathering the current storm.
As the pandemic sunk the entire global economy, the world was awash in too much oil. And storing oil is expensive, so producers were paying buyers just to take it off their hands! Things are very different today. Oil is pushing over $100 to hit levels we haven’t seen since 2014, reflecting today’s scenario of tight supplies and little extra capacity. It just goes to show how unstable these commodities markets can be from one year to the next. A major crash could be around the next corner and most investors probably wouldn’t know it. In fact, here’s why the world is possibly staring at a full-blown energy crisis…
Would World War II have come as quickly as it did? Probably not. In reality, Germany was already isolated. After 1933, the Nazis moved to make the country self-reliant. Everything went to Hitler’s war machine. Germany didn’t depend on Europe for anything in 1939, and vice versa. From its spurious historical rationale to its bloodiness, Vladimir Putin’s invasion of Ukraine is a carbon copy of Hitler’s invasion of Poland (with one exception: Putin’s blitzkrieg appears to be failing in the face of fanatical Ukrainian resistance).And yet, Russian commodities still flow westward. Although Western sanctions have ratcheted up faster than I expected, there are still big carve-outs for Russian energy exports.
It may not be World War III out there, but Russia’s invasion of the Ukraine is already sending aftershocks through the world’s commodities markets. In this week’s episode of Your Money Matters, Ted Bauman and Clint Lee take a closer look at what’s happening as sanctions set in and supply chains are stressed in real time. Perhaps more importantly, they share three key plays to help defend and grow your portfolio as the consequences of Russia’s war ripple through the global economy.
Russia’s invasion of the Ukraine is official. With tanks in the street, sanctions set to fly and Russia’s stock market in free fall, Ted Bauman takes a moment to zoom out and look at the bigger picture for your portfolio. Today’s video covers Russia’s motivations for going to war, the likely outcome for global commodities prices, and how you can safely grow and protect your wealth as history unfolds in Eastern Europe.
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James Hickman (aka Simon Black) is an international investor, entrepreneur, [...]