Crisis in Ukraine
Every time the USA faces a crisis, real or imagined, the stock market stumbles. We saw one take place in 2001 during the 9/11 attacks on the World Trade Center. It happened again with the invasion of Iraq and Afghanistan. Last year, the stock market expanded at a rate in excess of our GDP. This year, we may be due for a correction; however, uncertainty appears to doom the market, which now appears to be the case with the situation in Ukraine. When the market is perceived to be unstable, there is a flight to safety — such as gold, money markets, treasury bonds, and life and annuity products.
Russia decided to expand their control over Crimea. The area has historically been in Russian control, and most of the population is Russian. But this does not matter. The West responds — perhaps with economic sanctions which could lead to another recession. Once again, the market responds, and drops. Investors look for safety: annuity and life products.
The market responds
Of course the market drops each time there is discussion on invasion, economic sanctions and the crisis in the Ukraine. Until this situation is resolved, look for instability in the market.