What is one of the government prompted cardinal sins that results to a bear market? The answer is War! We have dealt with this in our past article, Phisix: Learning From the Lessons of Financial History.
So now it appears we have a LIVE unfolding showcase: Russian assets have been collapsing since the military conflict with
``Meanwhile, Russian share indexes have hit their lowest levels for almost two years.
``Going forward, the Russian markets will remain under pressure for as long as there is no move towards a resolution of the conflict. In addition, further falls in oil prices could add to the downward pressure on Russian assets. Caution is thus clearly warranted in the Russian financial markets.”
From the New York Times,
``Mr. Saakashivili, the Georgian president, said
“They need control of energy routes,” Mr. Saakashvili said. “They need sea ports. They need transportation infrastructure. And primarily, they want to get rid of us. ”
Hmmmm. It seems to sound more like a conflict premised on commodity geopolitics!