What a difference a day makes, right? On Monday, the bears could be heard telling anyone who would listen that the sky was indeed falling in response to Russia’s “invasion” of Crimea. (“No, really, seriously, we mean it this time!”)
The idea being promoted was that Vladimir Putin was doing his best Saddam Hussein imitation by planning to annex some additional beach-front property for Mother Russia. Those traders dressed in their fur caps suggested that the West would object, sanctions would fail and before you could look up the spelling of Ukraine’s new President, World War III would be at hand.
Oh, and lest we forget, there was also talk of the economic calamity that was sure to ensue. Remember, Europe gets one-third of its oil from Russia via pipelines that run through the Ukraine. Therefore, once troops started moving and the drones started flying their bombing missions, the Eurozone was sure to sink back into recession. In turn, this would cause the credit crisis to flare up and investors would be back on full-time Merkel watch. Joy.
A Funny Thing Happened on the Way to the Ultimatum
To hear the fast-money types tell it, Tuesday was supposed to be a very tough day to be in the stock market. You see, there were reports on Monday that Russian forces had issued an ultimatum to the Ukrainians that they’d best stand down on Tuesday, or else.
David Moenning is the founder and chief investment strategist for StateoftheMarkets.com, a website dedicated to investor education and portfolio analysis. Mr. Moenning is also President of Heritage Capital Management, a privately owned, investment management firm. Founded in 1989, Heritage is focuses on risk management and an “own the best and ignore the rest” equity selection strategy.
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