Residents are almost sure to see an increase in gas prices as markets fluctuate following the Russian invasion of Ukraine. (Nigel Maxwell/paNOW staff)

By Susan McNeil

Stocks

Investment caution is the wise choice in times of conflict

Feb 25, 2022 | 3:52 PM

The best thing to do with investments when there is turmoil is usually nothing says a local financial planner.

Panicked decisions are the wrong choice, said Bryan Rindal, of BTR Financial Planning in Prince Albert.

“Prior to the conflict the first couple days Europe was quite negative. Yesterday, the North American market was quite negative and rallied at the end of the day. I’m looking today and they’re up fairly strong,” said Rindal, speaking on the second day following the Russian invasion of Ukraine.

When there is conflict, investors tend to switch their money into safer areas.

In the past, that was the U.S. greenback and gold. Now some cryptocurrencies have come into play and people are starting to think that might be a good place to hoard money, Rindal said.

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“Number one, the first mistake they make is they panic. You get a whole bunch of rush to what people consider safe havens,” he said.

The conflict in Ukraine could result in a bad situation for Europe, which imports 41 per cent of its natural gas from Russia.

However, the same situation could turn into a positive for Canadian oil and gas companies. Yesterday, Alberta Premier Jason Kenney called for a global embargo of all oil and gas exports from Russia.

He was joined by Premier Scott Moe who tweeted that global trade sanctions against Russia are needed, including the immediate cessation of importing oil and natural gas into Canada.

What is impossible to predict when it comes to market changes is the timing of increases and drops.

“The bottom line is that in most cases, the recovery is usually fairly quick from things like this because it’s usually a knee jerk reaction,” Rindal explained.

“Any decision made in a panic situation is usually the wrong decision. The toughest thing to do is sit on your hands and do nothing but in most cases, that’s probably the thing to do.”

Once the situation is over and people have had time to assess the impact, is the time to look at your investment portfolio and make changes.

“Who are going to be the winners and losers after all this stuff has settled?” he said.

North American markets have been strong over the last few days, though, and that should ease any worry over investments.

There was plenty of advance notice that the conflict in the Ukraine was going happen and that may have played a role.

One thing residents of Prince Albert will almost certainly notice is an increase in the costs of fuel.

“You’re probably going to be paying more at the pump. That’s almost a given,” said Rindal. That likely will also include the price of natural gas.

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susan.mcneil@pattisonmedia.com

On Twitter: @princealbertnow