March 4, 2014
By Peter Bower
Three weeks ago we wrote that we were likely to have periods of volatility this year. Well guess what; it’s here. The catalyst this week is the Russian invasion of Crimea and the ongoing uncertainty as to the future of the Ukraine. Do we remember all the events that caused market hiccups a couple years ago; probably not? This too will probably be forgotten by investors sooner rather than later. The economic impact to companies in the U.S. is next to nothing.
Recently the S&P500 index made a new high and we saw break outs in mid-cap stocks too. The material sector, a strong barometer for industrial growth, also broke out to the upside. These events bode well for the future and say much more than a short-term market burp over geo-political events in a far-away place. Keep focused on the factors that matter.
