Investment Lesson Learnt From Wagner Russia Conflict.

JC888
2023-06-25

On Fri, 23 Jun 2023, Russian mercenary Wagner Group, rebelled against the Russian military.

The mutiny occurred following increasing tensions between the Russian Ministry of Defense and Wagner's leader Yevgeny Prigozhin.

While watching the news unfolded before us, I begin to wonder whether there is any investment lesson to be learnt from this “surprise” turn of event.

I confessed, sometimes I like to draw parallelism between an event (political or otherwise) and Wall Street.

Actually, if you look closely, there are many of such instances just that they could be subtle and with the blink of an eye, passes us by without even the slightest of notice. LOL !

Perverse? You decide as I lay bare my “analysis”.

Assumptions / Hypothesis:

  • Russian government = (equals to) Wall Street.

  • Wagner group = (equals to) individual investor.

Environment:

  • Any individual investor faces many challenges and risks in navigating the investment landscape.

  • Agree?

Decision making time?

Considering the above’s, factors that could affect an investor's decisions are: (recall the assumptions ok!)

  • High level of corruption and cronyism in the Russian political and economic system

  • Lack of transparency and accountability in the Russian financial markets and institutions

  • Volatility and unpredictability of the Russian economy

  • Sanctions and pressure from the international community over Russia's actions in Ukraine and elsewhere

  • Potential for unrest and instability in Russia as a result of Wagner Group's rebellion or other factors

Lessons that could be learned and applied: (it’s almost a point-for-point interpretation)

  • Diversify one's portfolio and avoid putting all eggs in one basket.

  • Conduct thorough research and analysis before making any investment decisions.

  • Be acutely aware of the legal & regulatory frameworks. And their implications for investors.

  • Be prepared for any contingencies and scenarios that could affect the market conditions.

  • “Seek” professional advice and guidance from reputable sources, make the decision and own it.

Captain America of Wall Street

In Summary:

  • Be your “own” Captain America of Wall Street.

  • Accept that Wall Street will be “out to get you” anytime.

  • Inner workings of Wall Street will never be clear and lucid.

  • Stock markets “influence” each other constantly - directly or indirectly.

  • Learn to navigate thru the trials and tribulations in Wall Street - day in, day out, month in, month out and year in,year out. It is a marathon; not a sprint (could have short burst of it now & then).

  • Do you think that there are lessons to be learnt from the internal conflict?

  • Do you think you need to be the captain of your own ship when it comes to investing?

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