The war in Ukraine has put a fog on the market. The rising cost of oil exacerbates the already high inflation, and there is significant risk of a recession in Europe. China was already having issues with its economy as its regime continues to reverse the liberating reforms.
There is lots to worry about as an investor, which is why we have seen a market correction. Corrections are not fun – in fact they are scary, as it always seems this could turn into more than just a correction. There are always arguments for why this time it is really the end of days, and the market will go to zero. That causes stress and stress literally causes tunnel vision, and all we can focus on are the negative news items, of which there are plenty. It is like being in a fog – one cannot see anything around them, only what is right in front of them, which today is the conflict in Ukraine, runaway inflation, and slow economic growth. Eventually the fog lifts and the world reappears. When it does – and it may already be happening – there are opportunities for investors. It may not seem like it, but then it never does.
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