Needless to say, we are living in a dangerous world.  For a long time, many of our “allies” who have lived under our protection have felt free to go their own way, often mocking the U.S. and ignoring their treaty obligations.  Suddenly, though, reality has hit many of our “allies” and we are seeing them begin to once again arm against the slings and arrows of an outrageous world.  The nations who mocked our former Presidents’ demands that they live up to their treaty commitments are increasing their military budgets (for weapons and not, as previously, higher retirement pay) and joint consultations.  

Before we take a look at this further thought, I must say that in my humble opinion, this crisis with Putin and Russia will not go away soon.  There is no easy way out for Putin; if he crushes the Ukraine, there will be a difficult and bloody occupation which will impact the world economy for the foreseeable future.  If he is overthrown, which is a possibility, there will be a period of instability in Russia and the cost of rebuilding will be huge. This means that for the foreseeable future, the markets will be in turmoil. Depending on your risk tolerance, time frame, financial stability, etc., you should decide and watch your course of action.  

Some will flee the market and put their money in cash (and lose out due to inflation) or bonds (which will provide some protection).  Some will buy into the market in the belief that in the end, as in the past, the market will recover and move forward.  Some will put monies into annuities which, while illiquid, can provide downside protection.  Some will depend upon diversification, which is a combination of all the above.  In short, there is no one easy answer; as always, saving and investing depends upon your own personal paranoia.

WHAT WILL OTHER COUNTRIES DO?  Let us look at some of the players and see what their actions might be: