With the Russian invasion of Ukraine, inflation is going to get even worse.
The market’s been on a wild ride lately, reacting to every twist and turn in the Ukrainian crisis, but Jim Cramer told his Mad Money viewers Monday that the real concern remains inflation, and things are going to get worse before they get better.
Make no mistake, Russia’s invasion of Ukraine is a geopolitical and humanitarian disaster. But it’s not likely to have a big effect on your portfolio, at least not directly. Cramer explained that U.S. banks are not linked to Russian and European banks as they’ve been the past. Thus the many sanctions and financial disruptions around the globe will not affect stocks like JP Morgan Chase JPM or Goldman Sachs GS.
What the conflict in Ukraine will do, however, is raise oil prices, something that acts as a tax on everyone. And with Federal Reserve chairman Jay Powell already looking to take a hard stance on inflation, higher prices at the pump can only ass fuel to the already raging fire.
The questions investors must ask is whether their stocks have gone down enough to handle what Powell or Putin can throw at them? If so, then it’s safe to buy, but if not, then the prudent move remains to raise cash and wait for lower prices.
The Action Alerts PLUS team can help you navigate this uncertain market action. Get in on the conversation and get more trading strategies from the Action Alerts PLUS investment club.
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