360° Coverage : Volatility Returns As the Crisis In Ukraine Creates Market...

2 Updates
Volatility Returns As the Crisis In Ukraine Creates Market Uncertainty
Photo Credit: Forbes Business

Volatility Returns As the Crisis In Ukraine Creates Market Uncertainty

Mar 4 2014, 6:45pm CST | by

Some investors may have never even heard of Ukraine prior to the last two weeks. Now the future of Ukraine and potential repercussions on other countries in the region appear to be at the forefront...

Filed under: news

 
 
 

27 weeks ago

Volatility Returns As the Crisis In Ukraine Creates Market Uncertainty

Mar 4 2014, 6:45pm CST | by

Some investors may have never even heard of Ukraine prior to the last two weeks. Now the future of Ukraine and potential repercussions on other countries in the region appear to be at the forefront of investor minds across the globe.

Overall, Ukraine is a relatively small country in Eastern Europe with a population of about 46 million people that borders the likes of Russia, Belarus, Poland, Slovakia, Hungary, Romania and Moldova. Not known for much outside of fertile farm grounds, Ukraine was thrust into worldwide headlines when it removed its President on February 22, largely in response to mass, ongoing but intensified anti-government protests in the country that left many dead or wounded.

Russia decided to step in with its military to purportedly protect its citizens residing in Crimea (one of the regions of eastern Ukraine), but many fear that this action may be an attempt by Russia to potentially take control of the region entirely and the start of a more wide reaching military campaign.

Source: Justmaps.org

While it is not clear what will happen next in Ukraine and if the crisis will escalate into a larger scale international event, it is clear that some investors are nervous. As a result, volatility has returned to the stock market. As the market closed on March 3, the Dow Jones Industrial Average declined nearly 154 points for the day, representing an approximate 1% daily drop. Losses were more severe in other asset classes and sectors of the market though as seen through certain well-known exchange-traded funds.

For example, International Emerging Market Equities, as represented by the iShares MSCI Emerging Markets ETF (EEM), finished down nearly 2% for the day and International Developed Market Equities, as represented by the iShares MSCI EAFE ETF (EFA), lost more than 2% for the day.

Most other major equity asset classes and sectors followed suit with the “risk off” market retreat while bond market and non-traditional/alternative asset classes such as precious metals, gold and silver, agricultural commodities, energy commodities and real estate investment trusts (REITs) appeared to be some of the benefactors of this short term volatility.

This recent market volatility, which may prove to be shorter term in nature than some currently fear and is the second significant crisis in the Emerging Markets already this year, should serve as a reminder of the importance of asset allocation in a properly constructed growth portfolio.

Asset allocation remains of the upmost importance, in my view, and should always be constructed in accordance with one’s investment objectives, investment timeframe and tolerance for risk. While past performance cannot guarantee future results and asset allocation cannot ensure a profit or protect against a loss, applying a historical perspective and maintaining an appropriate strategic asset allocation can help provide comfort and direction to investors during periods of great volatility – whether these periods are short term or long term.

Investors would be wise to look for areas of low correlation in non-traditional asset classes and sectors in an effort to not only provide for additional diversification but also to help  find additional pockets of risk-adjusted growth potential in 2014.

Disclosure:  The information provided is for educational purposes only and should not be misconstrued as a solicitation to purchase or sell any of the securities mentioned.  Hennion & Walsh Asset Management currently has allocations within its managed money program and Hennion & Walsh currently has allocations within certain SmartTrust® Unit Investment Trusts (UITs) consistent with several of the investment themes cited above.

Source: Forbes Business

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workfo ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

2 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

World Bank launches website to track project progress
Washington, Sep 16 (IANS) The World Bank Monday launched a new website to allow users to track the progress of the bank's projects and check whether the group is meeting its key targets, including poverty reduction and boosting inclusive growth.
 
 
No Ebola risk in Italy from migrants
Rome, Sep 16 (IANS) Italian Health Minister Beatrice Lorenzin Monday ruled out that there could be a risk of Ebola coming to Italy from African migrants, as suggested by some media reports in the past weeks.
 
 
India, Vietnam for peaceful South China Sea, $15 bn trade (Intro Roundup)
Hanoi, Sep 15 (IANS) Firming up their relationship at a higher level, India and Vietnam Monday called for a peaceful, unfettered South China Sea, inked seven agreements including for direct Delhi-Hanoi flights and an extended line of credit for purchase of military equipment, as they set a target of $15 billion bilateral trade by 2020 with a focus on tourism, garments and textiles, pharmaceuticals and agriculture.
 
 
Vietnamese kill five mn dogs for food annually
Bangkok, Sep 15 (IANS/EFE) The people of Vietnam slaughter at least five million dogs for food in a year, a figure only surpassed by China in the entire Asian continent, Vietnamese media reported Monday.
 
 
 

Latest from the Network

World Bank launches website to track project progress
Washington, Sep 16 (IANS) The World Bank Monday launched a new website to allow users to track the progress of the bank's projects and check whether the group is meeting its key targets, including poverty reduction and...
Read more on Business Balla
 
EU leads opposition against Iceland's whaling
Reykjavík, Sep 16 (IANS) The European Union (EU) led a joint multi-country opposition against the Iceland government's permission for commercial whale hunting and trading Monday, according to a statement issued by the...
Read more on Politics Balla
 
Ariana Grande wrote sex song at 14
Ariana Grande wrote a sexual song when she was 14. The 21-year-old singer first penned a naughty track when she was a teenager, but her mother thought she was ''too young'' to be creating records like that. She said...
Read more on Celebrity Balla
 
Kevin Rahm becomes a father
Kevin Rahm has become a father to a baby girl. The 'Mad Men' star took to his Twitter account to announce that he and his wife Amy welcomed their first child into the world at UC Davis Children's Hospital in California...
Read more on Celebrity Balla
 
Jennifer Garner and Ben Affleck have 'mindful' marriage
Jennifer Garner and Ben Affleck have a ''very mindful'' marriage. The 42-year-old actress admits she's not interested in being courted by the Hollywood hunk, 42, on a regular basis and believes their relationship works...
Read more on Celebrity Balla
 
Robin Thicke lied about writing Blurred Lines
Robin Thicke has revealed he was ''high on Vicodin and alcohol'' when 'Blurred Lines' was recorded. The 37-year-old singer is currently embroiled in a legal dispute with Marvin Gaye's children, who have accuse the hunk...
Read more on Celebrity Balla
 
OSCE monitors come under fire at MH17 crash site
Vienna, Sep 16 (IANS/ITAR -TASS) Monitors from the Organisation for Security and Cooperation in Europe (OSCE) came under artillery fire at the MH17 crash site in eastern Ukraine Sep 14, a report released by the...
Read more on Politics Balla
 
EU sanctions limit opportunities for dialogue: Moscow
Moscow, Sep 16 (IANS) The European Union (EU) sanctions against Russia limits the possibilities of bilateral dialogue, Russia's foreign ministry said Monday. "The spiral of EU sanctions considerably narrows the...
Read more on Politics Balla
 
Alexa Chung posses prediction powers
New York, Sep 16 (IANS) Model-presenter Alexa Chung says she stays a step ahead of others in the fashion circuit as she can predict style trends before they hit the runway. She is here for the New York Fashion Week,...
Read more on Celebrity Balla
 
No Ebola risk in Italy from migrants
Rome, Sep 16 (IANS) Italian Health Minister Beatrice Lorenzin Monday ruled out that there could be a risk of Ebola coming to Italy from African migrants, as suggested by some media reports in the past weeks. Speaking...
Read more on Business Balla