IMCV - Russia And Ukraine: What It Means (And Doesn't) For Your Portfolio

• Tensions are increasing between Russia and Ukraine as the pullback deepens for stocks.
• Ultimately stock prices are a function of earnings and valuations (P/E multiples).
• If similar conflicts in the past are any guide, the effects on the profits of US companies is likely to be small.
• Changes in corporate profits ultimately drive the overwhelming majority of returns.
• Stocks are in trouble for different reasons (mainly inflation and unrealistic earnings expectations). But the conflict in Ukraine, in all likelihood, will not be what knocks the stock market down.

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