An article from Financial Advisor magazine published on February 24th featured Marc Scudillo discussing the Russian invasion of Ukraine and its effects on markets.
While investors are not panicking over the invasion of Ukraine by Russia and the resulting market volatility, some have questions, according to advisors who discussed clients’ reactions in late February.
Marc Scudillo, managing officer of EisnerAmper’s wealth management and corporate benefits practice, said he has been getting questions from clients about the events in Ukraine. “They want to know how far the situation will go and what it means for them,” Scudillo said. “There are heightened emotions but we assure them we understand their concerns and they are not going to be down 10%, like the general market. We tell them our planning has set them up to react to both good and bad markets.”
Some of EisnerAmper’s clients even want to know how they can take advantage of the downturn in the market. “They said they have been wary of buying when the market was so high and they want to know how to use the crisis. They have confidence” in their planning, Scudillo says.
Some economic experts at universities are also encouraging advisors to advise clients to hold their positions, stating opinions like Putin has overreached and that markets could rebound before the crisis is over. There are varying opinions about how to invest during this crisis. Some say investing in the Russian market can be risky because so many companies are state-owned. Others believe the energy sector is likely to see movement following the invasion. The invasion may keep inflation high and inflation may become a global issue.
But it’s also possible the Federal Reserve will slow its increase of interest rates, or even bring rates down, benefiting stock valuations. When the crisis does end, this could help lower fear and drive markets back up, limiting its impact over the course of time.
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Marc Scudillo is the managing officer of EisnerAmper Wealth Management and Corporate Benefits LLC (www.eisneramperwmcb.com). He is a certified public accountant and a Certified Financial Planner™ and Certified Business Exit Consultant®.