03/01/2022
Early Thursday, Feb. 24, Russia launched a military offensive against Ukraine, the largest attack on a European state since the Second World War. Our thoughts are with the Ukrainian people, and the thousands of international citizens in Ukraine, who bear the brunt of this ongoing crisis. The impact on human lives caused by this invasion is devastating and we hope for a peaceful resolution as soon as possible.
What this means for Canadians
Markets initially dropped sharply, followed by continued volatility. Investors fled to safer assets, such as bonds. World governments responded with a first round of sanctions on Russia. These sanctions vary in their global effects but will generally have repercussions across economies, including Canada. In previous geopolitical crises, sanctions have had a significant impact on price movements in the markets. High market volatility is likely to continue, given the unknowns around Russia’s next steps or the West’s ability to tolerate the economic fallout of harsher sanctions. Markets have already priced in the effects of this conflict, but harsher sanctions or prolonged conflict raise the risk of increased market upheaval. This conflict and the dramatic moves in the market can make clients question their investment plan, but it’s important not to panic. While the sharp uptick in volatility has been sudden, history informs us that markets can recover quite quickly — even from extreme levels of volatility. For more information, please speak to your financial advisor at 905-728-4315.
