Good evening,

Before getting into this market update, our team continues to keep the people and families of the Ukraine in our thoughts.

Over the weekend, sanctions accelerated from the West as Russian forces moved further into Ukraine. The acceleration of the sanctions were aim at expanding some previously unused measures in an effort to put more pressure on Russian President Vladimir Putin, including:

• A pledge from the U.S., Canada and Europe to prevent the Bank of Russia from accessing its stockpile of foreign reserves equal to over half a trillion dollars in value, impairing Russia’s ability to stem losses in the ruble
• The exclusion of selected (but still unnamed) Russian banks from the SWIFT payment system, essentially cutting them off from the international financial system
• A blanket flight ban on Russian planes entering EU airspace
• The freezing of assets of VTB, Russia’s second largest bank
• A ban on exports of aircraft, parts and equipment to the Russian aerospace and space industries

Most notable among these measures, was the exclusion of Russian banks from the SWIFT system as well as the efforts to cut Russia off from their international currency reserves. The Russian ruble was in free-fall over the weekend, and after a sharp sell-off in equities last week, the Russian stock market has been halted as of today.

To help with the recent market volatility, I have attached a report that RBC Capital Markets produced on February 25, 2022, to help add prospective and insight. While I don’t think one needs to read the attachment in its entirety, the report does speak to a few noteworthy topics such as how investor sentiment how stabilized in late 2021 and now sits below pandemic levels (see page 7) and market drawdowns and recoveries (see pages 4 and 5).

Please continue to call us as Shannon, Tom, Brett and I all stand ready to listen and speak with you. We can also be made available to speak with any friends and family members who may need reassurance during these times.

Best,

Devin

 

To read the report, please click here.