What effect will the war in the Ukraine hon our economy?

[Jerry W.]

The most significant event in my not so short life was in 1989 when the Berlin Wall was torn down.  A country that had been divided for decades by a concrete wall and machine guns simply ceased to exist.  People were killed trying to escape across that wall, and no one wanted to enter.  Everyone knows about World War 2 and the cold war that came out of it.  Very few who are investing now had to worry about a global nuclear war that might erase all life on earth.  The fall of the Berlin Wall signaled to many of us, that other than some small country getting their hands on a nuclear weapon the threat of nuclear bombs had passed.

Now that threat has been resurrected by Putin in the invasion of Ukraine.  We are all horrified at the complete lack of concern shown by bombing and invading a country that is quite similar to ours in many ways.  Nuclear arsenals have been placed on high alert.  None of us know how far this war will go, how long it will last, and whether it will spiral into World War 3.

I do not mean to lessen in any way the seriousness of the invasion, but we all must face that it could have massive impacts on our investments and may present opportunities or dangers to our livelihood.  It is my opinion, not backed up with any facts that it could dwarf what occurred with Covid if it continues to grow.  It is my assumption that in times of great danger that people become more careful, spend less and think more about security than luxury.  It could mean fewer homes bought, fewer vacations, less money spent on consumables and more money saved.  Governments tend to spend more on military budgets and overseas aid and less on domestic expenditures.  While I hope for a quick resolution, even the economic measures being employed are affecting everyone of us right now.  I hope it works and we can see an end to the bloodshed and misery.  I fear it will not.

What do you foresee for our country, our economy and real estate investing as a whole.  I am not seeking to capitalize on the misery of others, but I do not want my family to suffer from my lack of planning from this earth shaking event.  Please share your thoughts and facts without creating political division, and please suggest things we can do to help the unfortunate victims in this.  One thing I have heard is booking vacation rentals in the Ukraine to send money to the hosts even if you obviously will not be going.

Thank you and keep the people of the Ukraine in your prayers.