Panama City, Panama, March 11, 2022 (GLOBE NEWSWIRE) -- Russia’s aggressive military action towards Ukraine is shaking financial markets around the world. Small and big Investors, who are just recovering from the loss they incurred during the pandemic, are again faced with lots of uncertainty. This geopolitical crisis is making stock prices swing as some investors have started selling off their investments.
We are also beginning to see the effect of the war on the crude oil price as it has crossed the $100 mark in recent time. This rising crude price is also not helping investors’ sentiments as more and more investors are now worried about what would happen to their investment if the tension between the two countries continues to escalate.
We discuss the risks investors would likely face in the short, medium, and long term if the war continues to flare up. We’ll also share tips on how investors can preserve their capital and rake in good returns on their investment, even if the tension continues to escalate.
Ukraine Conflicts: What are the risks for investors?
Evidence from past wars shows that conflicts of this nature are likely to have a ripple effect on the financial market. Although the impact is yet to be significant on stocks, financial experts believe the rising crude oil prices coupled with increasing commodity prices will likely trigger a sell-off and cause a drop in stock prices.
Russia’s financial market is already taking the hit. For example, the Russian stock market lost about 35% of its value when the country attacked Ukraine. The value is expected to even go lower as stiffer sanctions are being imposed on the country by the day. This tumbling effect is expected to affect stocks around the world soon if things continue to go down south between the two countries.
With this development, investors in traditional assets risk losing money on their investments again. It is uncertain which markets will be resilient to the Ukraine crisis, so deciding where to invest and where not to is daunting. Financial experts believe one of the best strategies to persevere your capital and protect your portfolio is by diversifying into digital assets.
Is Cryptocurrency a safe haven for investors during the Ukraine Invasion?
Digital assets have shown multiple times that they are more resilient to inflation and other factors than traditional assets. For instance, during the pandemic, cryptocurrencies didn’t go as low as stocks, and they also recovered more quickly.
However, how you invest in digital assets also goes a long way in determining whether you will make or lose money. So we recommended investing only with trusted and reliable digital asset managers. This way you can earn steady income while also preserving your capital. By investing with fund managers that make good on their promise, you can live on dividends you earn on your cryptocurrency investment while your capital continues to work for you.
The Russia-Ukraine war has resulted in increased crude oil prices. This conflict is also making commodity prices shoot up. Financial experts believe we will start feeling the impact of the war on financial markets soon. Stock prices will likely drop if the tension continues to flare up. So Investors should consider diversifying by investing in crisis-proof and inflation-resilient assets like cryptocurrencies to avoid losing money during this crisis.
About Morgan Investment Holding
Morgan Investment Holding is a digital currency management company with a trading and operation center, Morgan Consulting, in Michigan, America. The company offers cryptocurrency investment products that help investors earn 24% dividends on their investment. Morgan Investment Holding has another company, Morgan Asset Management, in Panama, offering financial advisory services for investors looking to invest in the digital economy.