March 30, 2022, 11:58 am EDT
Rally pauses today after disappointment about the Russia-Ukraine talk. Thus, the energy, defense, utility are coming back again.
It is true that Russia may retreat from attacking Kyia due to a lack of resources and supplies. The final resolution or peace is far from visible. In our opinion, the war is going to drag on longer and worse. Then, other various problems are going to spread to the rest of the world in terms of shortage of energy and food. Inflation will lift up prices for all necessary that will terminate the economic growth for the next 1-2 years.
The investment theme should be conservative by focusing on material, food-related, and defense. We can see the 52-week high list is full of healthcare, utility, energy, and REIT as evidence.