Russia, Ukraine, & Investment Performance
It seems that all anyone can talk about as of late is the Russia/Ukraine war, and certainly we pray for all those families caught in the middle. We know that Russia controls a substantial amount of oil and natural gas, and also holds a large amount of gold in their vaults. We have literally watched as their vast resources have gone up in value tremendously since the beginning of the year. Politics aside, they have positioned themselves well in this economic environment. As an investor, it certainly helps to have exposure to those same assets in your portfolio especially during these turbulent times.
What Assets Have Performed Well in 2022?
We have focused on diversifying our clients’ portfolios within the oil & gas sector along with precious metals, real estate, and farmland. All of these “real assets” have performed well even prior to the Russia/Ukraine conflict. Hard assets have been on an upward trend since 2020, with long track records of sustained growth generally speaking, throughout history. Taking into account our current economic climate and fiscal policies, they don’t show signs of slowing down.
See below for a chart outlining our 3 portfolios’ performance year to date based on each portfolio’s asset allocation (Individual results may vary depending upon account balance and individual positions), pitted against the S&P500 fund. We continue to see solid growth backed by foundational exposure to real assets like Real Estate, Farmland, Precious Metals, and Oil & Gas.
Macro Sky Portfolio Performance
As mentioned above, our model portfolios offer managed exposure to alternative investments/hard assets for both accredited ($1M+ net worth) and non-accredited investors (less than $1M) through publicly traded investments. If you’d like to know more specific information or simply discuss these strategies, feel free to reach out today.
- Macro Sky Growth Portfolio: + 1.60%
- Macro Sky Value + Growth Portfolio: +3.62%
- Macro Sky Inflation Hedge Portfolio: +9.68%
- Vanguard S&P500 Index Fund: -8.24%
Reading this article, an investor might ask themselves why they shouldn’t invest all their money into precious metals or buy up all the acres of farmland they can afford. The first answer that comes to mind is that diversification is critical to weathering any storm that you will encounter, and we all know storms vary by type and timeline. The other answer to that self imposed question is that every individual situation is different and complex. There is no one size fits all solution when it comes to investing. These reasons among others are why you need to work with a trusted advisor that understands your unique situation before entering into any new investment ventures, especially during economically turbulent times. Please read our disclaimer, linked here.