Listen up, folks. If you’ve got money in the markets, you need to pay very close attention to what’s happening in Ukraine right now. Because as geopolitical expert James Rickards warns in his latest piece, “U.S. Plays Russian Roulette”, we may be on the verge of a serious escalation between the U.S. and Russia that could send shockwaves through the global economy.
Rickards pulls no punches, stating bluntly:
“Since the start of the war in Ukraine, I’ve been warning about the dangers of escalation between the U.S. and Russia. We may be about to take a serious step up the escalation ladder.”
James Rickards
He’s referring to a recent Ukrainian attack on Crimea using U.S.-supplied missiles that ended up detonating over a crowded public beach, killing four people and wounding over 150. The Russian government has directly blamed the U.S. for the attack, with the defense ministry stating:
“The responsibility for a deliberate missile strike on peaceful residents of Sevastopol is primarily carried by Washington, which supplied this weaponry to Ukraine.”
Folks, this is deadly serious. As Rickards explains, the U.S. doesn’t just hand over these advanced weapons systems to Ukraine – they provide the targeting data and essentially load and aim the gun for Ukraine to pull the trigger. Russia knows this, which is why they are so outraged.
So what does this mean for your money? In a word: volatility. Rickards lays out several ways Russia could choose to retaliate indirectly, such as:
- Arming proxies in Syria to attack U.S. forces
- Supplying Iran with advanced missile tech to threaten Israel
- Giving Houthi rebels in Yemen advanced anti-ship missiles to target U.S. warships
Any one of these moves could cause markets to spiral. And if tensions continue to escalate to the point of a direct confrontation between the U.S. and Russia? Well, let’s just say you don’t want to be over-exposed to risk assets.
So what’s a smart investor to do? It’s time to take a hard look at your portfolio and make sure you’re prepared for rising geopolitical risk. That means:
- Increasing cash and cash-like holdings
- Reducing exposure to equities, especially in sectors sensitive to global instability
- Allocating a portion to hard assets like gold that can hold value in a crisis
No one can predict exactly how this situation will unfold. But as Rickards warns, we’re playing with fire, and “the longer this war drags on, the more likely it is that another similar incident will occur.”
Don’t get caught with your portfolio’s pants down. Click here for a free guide on how to “Ukraine-proof” your investments before it’s too late.
The clock is ticking. Act now, or you may regret it later.