What if Ukraine's situation escalates?

Dear All,

I would like to find out from fellow valuebuddies, what will you do (in terms of investing or rebalancing your portfolio) if Ukraine's situation escalates (e.g Russia continues to annex other Eastern parts of Ukraine despite sanctions from the West)? What could be some of the ways or strategies to minimise the impacts or even gain from it (though seems morally incorrect )

http://www.channelnewsasia.com/news/worl...83722.html

Thank you!

3 risks from the Ukraine crisis
http://money.cnn.com/2014/04/25/investin...l?iid=Lead

From long term value investment point of view, it will be an event that we should celebrate it. Great chance to buy good companies at low price.

I feel that prices of commodities like gold and silver will rise. Been monitoring stocks like Barrick Gold and Endeavour Silver among the many.

In terms of risk minimization, we should avoid companies with significant business in Ukraine or Eastern Europe. But I dun think there are many Singapore companies with huge business in that part of the world.

In terms of benefitting from the crisis, well......the market may correct a little. So, we might have the chance to get the stocks we want at attractive prices?

Putin is not stupid. It will not develop into a full-blown sanction otherwise the biggest winner would probably be China.

For years, China and Russia can't settle the pricing mechanism about Russian oil and gas to China. With sanction and Europe out of the picture, there is only one large buyer of Russian oil and gas will be China. And Russian needs dollar for its huge import of consumer products and other things. Both the Chinese and the Russian know it well.

(26-04-2014, 04:36 PM)freedom Wrote: Putin is not stupid. It will not develop into a full-blown sanction otherwise the biggest winner would probably be China.

For years, China and Russia can't settle the pricing mechanism about Russian oil and gas to China. With sanction and Europe out of the picture, there is only one large buyer of Russian oil and gas will be China. And Russian needs dollar for its huge import of consumer products and other things. Both the Chinese and the Russian know it well.

Hi freedom,

What makes you so confidence? I think nationalistic pride will cause Putin to be on slippery slope, to keep pushing the envelope. In terms of economic, there is no point stirring up the eastern states after crimson. But it is very obvious Putin is doing just that. I also hope u are right, and Putin knows the game and do not have other agenda.

This time round, he has most of the populace behind him, unlike Iran, willing to take pain for exchange of some historical "humiliation", and the weak western reactions and the lower threshold of pain in western populace could play into Putin hands.

I agree with freedom's view.

Russia won't die.

Its a buy opportunity.

Ask yourself, how much can Putin win by going further into Ukraine?

Yes, he might win the whole Ukraine. He will lose enormous economic value, possible his ruling of Russia. How much support will he get when most of the people are starving because of some nationalistic view?

He will lose the oil and gas revenue in Europe, replacing with lower pricing from China. Russia can't import from most of the countries in the world.

Valuebuddies should take the main stream western press with a huge pinch of salt. From my vantage point, the west (in particular US and its allies) manufactured this crisis... i.e. 自导自演. Remember at the point when Gorbachev allowed the unification of Germany, James Baker promised that Nato will not even expand an inch eastwards......

Please feel free to read further on this matter:

Paul Craig Roberts

American Weakness?

Nato marches east

P.S. The last time I checked, US is still importing natural gas and crude oil. I have no idea who gave the politicians the silly notion that Europe can rely on imports from America instead of Russia.....