Is Now A Good Time To Invest Amid Russia-Ukraine Uncertainty?

Stocks are down across the board, hitting new 52-week lows day after day — is now the time to buy or will there be a recession in 2022?

Feb. 25, 2022

“Are we in a bear market?” is a question investors are likely asking themselves right now. Well, technically, no. But Big Tech being a heavily weighted percentage on overall indexes has been the key factor keeping markets afloat.

The state of the U.S. stock market right now

U.S. stocks won’t be hit as hard. Why? Because the U.S. has its own oil reserves, and is less reliant on countries like Russia. Even though Russia does control a good chunk of global supply, it’s really Europe that will have to worry. Increased prices however are likely in the short term nonetheless.

Besides oil, Ukraine and Russia have also been key suppliers of semiconductor components for many global firms. With an estimated 45% control over global semiconductor supply, this could dampen the outlook for some U.S. businesses that were expecting issues to ease over the coming months, and it could get worse before it gets better.

Is now a good time to buy stocks?

Plenty of new investors have heard the term “buy the dip”, but unfortunately, not enough have heard the saying “don’t try to catch a falling knife”. First things first, speculative investments are never a good idea. Investing in companies with solid fundamentals should always be the first step on your checklist. This market is telling us right now that it has a zero-tolerance policy for unprofitable, speculative investments, so all investors should take heed of the risks.

This rolls back into another tenet of investing — never fall in love with a stock. We all have a favorite pick here at MyWallSt, but it doesn’t mean we ignore diversification. Moreso, in the last two years, investors have chased multi-bagger returns. More often than not, however, these investments take years to play out, so now is a time investors need to practice another tenet — patience. Now, more than ever, is the time to protect and retain your best investments and even take advantage of market conditions. Some even think a “relief rally” is around the corner.

What are the best stocks to buy right now?

There is any number of options, once investors pay attention to risk. Perhaps you need a value-oriented company with a proven track record to bolster your portfolio, or maybe it’s time to dip your toes into some growth names you had been watching on the sidelines, to get in at a better price. There are no promises that the market has reached a bottom, but we’re certainly closer to it than we were three months ago, so dollar-cost averaging could be a good strategy.