(Recorded on 03/21/23) Topics covered on this video coaching call In this special video presentation, trading coach Jerry Robinson shares many charts and shares his signature commentary on the financial markets. Included in this video: – Charting the S&P...
Ukraine Crisis Rocks Russian Stocks, Currency
FTMDAILY.COM – Furious beating of the war drums over Ukraine sent Moscow’s benchmark MICEX stock index falling by 10.8% on Monday, instantly wiping out over $56 billion in market value of Moscow’s publicly traded companies. Meanwhile, Russia’s currency (the Ruble) fell to its lowest level ever against both the U.S. Dollar and the Euro.
Russia’s central bank responded by selling nearly $16.6 billion worth of gold and foreign currency exchange reserves in a feverish attempt at staving off currency speculators. Additionally, the central bank surprised the markets with a steep interest rate hike, from 5.5% to 7%.
The geopolitical and economic realities behind this burgeoning crisis are nothing new. Put simply, Europe is Russia’s top natural gas export market. And approximately 50% of Russia’s exported natural gas to Europe flows through one country: Ukraine. While there are obviously other deep issues in play, what we have here is a clear case of pipeline politics.
In recent days, Russia has used its role as Ukraine’s primary energy player to pressure Kiev into submission. As the national conduit for Russia’s connection to European markets, Ukraine has been given steep discounts on the natural gas flowing through its country. However, the contract for these discounted rates is set to expire on the last day of March. With tensions flaring in the region, and Kiev nearing bankruptcy, everything is now uncertain.
Meanwhile, Mr. Putin has been desperately attempting to create a new Eurasian Union to solidify Russian might and to counter the expansion of Europe. Ukraine was to play an important role in this new economic union. Now, it seems the only way for Russia to prevent the fall of Ukraine to the West is through force… or at least the “threat” of force.
Leaders of the G-7 countries have condemned Russia’s recent move into Ukraine. Publicly, the West has tossed around the idea of applying sanctions against Russia. But if the West attempts to place economic sanctions on Russia, Mr. Putin could (and quite possibly would) simply turn off the gas flowing into Ukraine — and thus, into Europe.
Due to the potential economic fallout, the UK has already begun backtracking on the idea of sanctions. According to the Telegraph:
“Britain is preparing to rule out trade sanctions against Russia amid fears that the Ukraine crisis could derail the global economic recovery.”
So far, Mr. Putin remains defiant in the face of a growing chorus of global critics. He continues to act without regard to threats from the West, pointing to support from his allies in China. In fact, there are even reports from Polish radio that Russia is beefing up its military presence along the borders of Poland and Lithuania.
Mr. Putin has worked hard to build a global reputation as a no-nonsense authoritarian ruler. Therefore, he has little political capital to gain from backing down. This is what makes these unfolding events in this tumultuous region so concerning.
To see one ETF we expect to climb higher on these current tensions (along with an potential entry price and an exit price), click here.
Inside this Issue
Rattled By Ukraine, U.S. Stocks Start March Lower
The market behaved in predictable ways for such unpredictable events. Stocks dropped; gold, oil and bonds rose.
PDF: Warren Buffett’s Annual Letter to Shareholders
In case you missed it, here’s the PDF for you to download and read at your leisure.
Warren Buffett’s 23 Best Quotes About Investing
Not only is Buffett the most successful investor in history. He also shares his wisdom in an approachable and entertaining manner.
Could Israel Really Be the Next Energy Superpower?
The discovery of natural gas off Israel’s coast have given a sense a promise to the once energy-starved nation.
Number of Billionaires Up Significantly
There are a record 1,645 billionaires worldwide, with the US the top supplier.
View the Investor Wire Archive >>
U.S. Financial Markets
Real-time Gold and Silver Prices
Ukraine Seeks $15 Billion Rescue from IMF
Ukraine’s interim government said Monday it wants a $15 billion rescue from the International Monetary Fund as officials from the emergency lender kicked off a 10-day visit to shape a bailout of the struggling economy.
Japan Pledges $200 Million in Aid for Palestinians
The promised aid comes amid a new boost in East Asia to assist the Palestinians.
China Fields New Intermediate-Range Nuclear Missile
The new missile is estimated to have a range of at least 2,200 miles—enough for Chinese military forces to conduct attacks on U.S. military facilities in Guam.
MAG: Obama’s Scary Interview on Israel
On the eve of the Netanyahu visit to Washington, President Obama gave a lengthy interview to Jeffrey Goldberg that shows a chief executive who has learned next to nothing about the world in his five years in office.
Giant Virus Resurrected from Permafrost After 30,000 Years
A 30,000-year-old giant virus has been revived from the frozen Siberian tundra, sparking concern that increased mining and oil drilling in rapidly warming northern latitudes could disturb dormant microbial life that could one day prove harmful to man.
PODCAST: Gold and Stock Update
Broadcast Every Saturday Morning – Hosted by Jerry Robinson
Topic: With Jerry Robinson on vacation last week, this brief episode provides a precious metals update, our latest trading performance, and an investing idea..
Download Now >>
(Right click link above and ‘save as’ to your device)
“Daily Investment Trends for the Savvy Investor”
You are attempting to view premium content for subscribers only. If you are a subscriber, log in here. If you are not currently subscribed, you can learn more here.View the Daily Chart Archive >>
“A Daily Stock Trading Idea for Short-Term Traders”
— Subscribers Only —
You are attempting to view premium content for subscribers only. If you are a subscriber, log in here. If you are not currently subscribed, you can learn more here.
Enter the Trading Room to View all Trading Activity >>
View our Trading Performance >>
Not a subscriber? Learn more here >>
“A Daily Dose of Financial Wisdom from God’s Word”
“Without consultation, plans are frustrated, but with many counselors they succeed.”