Thursday, February 24, 2022

Quick update: Ukraine

I've been caught wrong-footed by Russia's Ukraine invasion:

  • I had an 11% position in Russian (and Soviet block) commodity companies.  Now down by about 1/3rd.  Hard to tell whats priced in.  I do not know if the US will really place sanctions on Russian commodities (except for piped gas).  Overall, I feel OK about it: when you roll the dice, sometimes you lose.
  • Worse, I had sold my oil, looking to buy back in June.  Its since gone parabolic.
I've been selling my gold position as it moves up.  Now its 5%.  Short term, I don't think it goes up much more, the uncertainty over Ukraine has been resolved.  In a few months, it may still rise as market expectations of interest rate rises drop.

I still think we get a market correction in June.  Hopefully I get a chance to buy oil/commodity producers then.

Everyone has a plan till they get punched in the mouth.

No comments: