It wasn’t widely known to the general public before recent days, but Russia is one of the world’s largest producers of many of the commodities necessary for modern society. Inflation was already on the rise, but since Russia’s invasion of Ukraine the price of gasoline has soared. That’s because Russia is the second-largest crude oil exporter globally, only behind Saudi Arabia.
‘Help Wanted’ signs are a common sight in towns and cities across the country. According to conventional wisdom, the shortage of workers (aka “missing workers”) is due to older workers, after enjoying outsized gains in their stock portfolios and real-estate holdings, exiting the workforce. However, a deeper look into labor force data from the U.S. Census Bureau shows this isn’t exactly the case.
The S&P 500 is down about -12% for the young year. About a quarter of the stocks in the S&P 500 are up so far, and three-quarters are down. Energy is the only sector enjoying a good start to 2022, up about 40%.
This market has been far more resilient than many investors ever thought possible. That suggests whatever craziness we have experienced can continue for some time. Fundamentals sometimes don’t seem to matter much in this environment. The viruses will likely recede; our government and economy are still running; companies will continue to earn profits under most conditions; and as the owners of those businesses, long term investors will continue to benefit.
It is well known that Russia is one of the world’s largest producers of energy, both natural gas and oil. So as gas prices continue to hit new highs across the country, just how much of the world’s oil does Russia produce?
Confidence among the nation’s consumers dipped this month as higher inflation weighed on sentiment. While the smaller-than-expected decline in consumer confidence was a good sign in the report, respondents stated they were worried about high inflation. Fewer people plan to buy homes, cars, autos and appliances in the next six months, the survey found.