- Russia is a significant producer and exporter of energy commodities and critical food products such as wheat.
- While blocking Russia's war funding stream may be necessary, investors would benefit from realistically understanding the extensive inflationary impact of sanctions.
- An immense rise in food, metal, and energy prices worldwide will undoubtedly force significant declines in all forms of discretionary spending.
- Companies with significant commodity purchases will lose while U.S. commodity producers may benefit substantially.
- Gold is likely to be a much stronger safe haven than Treasury bonds due to the highly inflationary impacts and resultant forced hawkish reactions from the Fed.
For further details see:
Welcome To March, Prepare For A Month Of Surprises