By now, the Media has been confirming the presence of Russian Troops in the Crimean region of the Ukraine. That should not come as a surprise to anyone, since the presence of the huge Russian Naval Base–home to its Black Seas Fleet–has been widely-known for years. In fact, it was prominently-portrayed in the popular 1990 movie, “The Hunt for Red October”.
The turmoil in the Ukraine, to include the ousting of Fugitive President Viktor Yanukovych, has been unfolding for a week; however; last week, the Dow Jones Industrials and S & P 500 (Sock) Indices had each hit new all-time Highs. Generally, the Financial Markets do not respond well to bad news; however, perhaps that just shows how little Wall Street follows World News. But, with the presence of Russian Troops in the Crimea this week, it might now have a good bit more prominence.
So, I believe that there will be some Market Volatility in the coming week, and perhaps even longer. Now, I’m not suggesting that anyone totally bail-out of the Stock Market; but, I realize that there may very well be some turbulence ahead. In fact, if you had been considering adding to your portfolio, select wisely and pick your spots.
I believe that there will be some verbal saber-rattling among the Major Powers and, perhaps, the European Union and the U. S. might pass on the G8 Summit which Russia will be hosting, in June in Sochi. As always, stay tuned!