The shocking events unfolding in europe are sending shockwaves throughout the world and our financial systems. We could be on the brink of economic crisis, which is why this video is so urgent, hi guys it's mark. So, whenever a crisis breaks out, it's usually the everyday people that get pushed around while the rich billionaires just sit in their ivory towers profiting from the chaos. When you see these events happening on the news, it might feel quite far from home.

However, that couldn't be further from the truth. The situation between russia and ukraine has escalated very quickly so quickly. In fact that when i was planning this video, i was going to discuss the potential scenarios if russia invaded and what it would mean for you and your money. But it's no longer a what.

If, because the what has already started, if you want to avoid being one of the financial casualties of this dire situation, then the information i'm going to be sharing in this video should prove very helpful when maneuvering your money, as this is a very sensitive subject, it Doesn't feel right making money off the back of this video? That's why i've decided to donate 100 of the profits that this video makes to the voices of children charity they help children who have experienced trauma due to conflict, i'm extremely passionate about helping the next generation. So that's where the money is going to keep a long story short. Russia has invaded ukraine and set global governments into crisis mode. No matter what side you agree with it's clear that everyone will be impacted by economic sanctions and in response retaliations.

So, let's first look at how this crisis will have a direct impact on your wallet through increased living costs as a businessman and investor, i understand that our supply chains rely heavily on global collaboration and one week link can cause a whole chain reaction. The governments around the world are being urged to make things financially difficult for russia and hit them where it hurts in their wallet, because, after all, money talks. However, this is a game. Russia can play too, and they have some pretty huge financial leverage points that they can exploit if they choose to retaliate.

I don't know why i'm saying if, as putin himself recently stated, that anyone standing in his way would feel consequences never experienced in history and russia's response would be immediate. So what could the financial consequences actually be? Well, let's look at the facts. Firstly, russia supplies. 40 percent of europe's gas and is the world's third largest producer of oil.

So it's pretty safe to say they have a huge influence on the markets, which can have a direct impact on both your home energy bills and at the gas station. To be honest, we're already facing a record increase in energy bills and oil prices are at an eight year high, so this would just be another nail in the coffin. Secondly, ukraine is very important to the world's agricultural industry. I'm talking about wheat, rye barley and other grains.

In fact it produces a quarter of the world's supply and half of its sunflower production as well. Putin could choose to affect the supply as a retaliation move which would half ukraine's production and double global wheat prices. The knock-on effect of this could cause a spike in global food prices and worst-case scenario. We could be looking at rationing and we haven't seen that since world war ii, this will just mean everyday investors have less money in their pockets at the end of each month.

For investing in their future, it may not seem like a substantial increase on paper, but when you consider compound interest that little amount could add up to thousands of lost dollars per person, as we know, commodities like gas and oil are intrinsically linked with companies. So, let's talk about the impact that this could have on the stock market and your investments. Russian stocks have crashed as much as 45 percent in one day, the biggest single drop in history. The rupa has also hit record lows against the dollar and it's fair to say.

Global stock markets are also very volatile. But it's important to remember that the stock market is a leading indicator, which means it's reacting to things that are potentially 6 to 12 months. In the future, so when the worst happens, it's almost always priced in this is why, when the official news hits, the markets don't actually respond as violently as you might expect, the direct opposite of this is a lagging indicator which will be something like the unemployment rate. This is good to remember, because when things are often looking the worse and everyone is freaking out, it doesn't necessarily mean that the markets are going to crash further.

Of course, i'm not saying they won't dip. However, you shouldn't be controlled by your fear, as you'll probably end up selling out at the wrong time, which is never a good thing. Inflation is currently at a 40-year high and as jason hollands a broker at best invest said rising. Energy prices would ramp up inflationary pressures and likely lead to continued interest rate rises because of this investors are looking for places to put their money in order to hedge against inflation.

A hedge is essentially a fancy tactic that investors use to protect themselves against losing money. In the markets, one strategy that is commonly used is investing in the stocks europe 600, which is a lot like the s, p 500, but tracks the top european companies. If you buy into this index, then you own a small part of all of the companies held within it. This is often seen as a hedge because of the luxury brands included in the index, such as louis vuitton, valenciaga and gucci, the idea being that these brands sell at a high price and their customers can afford to pay extra if they decide to hike the prices Up even further, therefore, the thinking is that investors shouldn't suffer as much, but that's just the financial theory and it isn't actually working at the moment.

Another popular strategy is investing in gold as it's seen as a safe haven, and this is currently playing out as we speak. The price of gold has been pretty flat over the past few months, despite the high inflation we've been seeing. However, now with tensions increasing between russia and ukraine, the price has increased by more than five percent just this month. There are two ways to invest in gold.

The first would be to actually buy physical gold like gold coins or a gold bar, and the second is to invest in a gold etf. Many investors prefer the first option, as they know where it's stored, rather than just owning the paper asset gold is worth buying. As it's got a limited supply, they're not making any more of it. This isn't technically seen as an investment, but instead a store of value, but that's just the stock market.

We haven't even mentioned crypto, yet joseph edwards, the head of financial strategy at the crypto firm soulrise group, said: we've seen what we'd expect so far bitcoin and crypto markets following stocks. All things tend to correlate in a crisis, and we're expecting similar here so worse is likely to be in store over coming days. I'd imagine this is because people see themselves losing money with stocks, so they decide to take their money out of higher risk assets like crypto. But the truth is there isn't really any long-term data spanning a crisis of this magnitude as bitcoin was only created in 2009, but in my opinion, many altcoins and momentum investments won't last through a period like this.

Should the worst case happen. The stock market has been absolutely wild lately due to the highest inflation in 40 years. The fed raising rates decreased demand and more many of your favorite investments are most likely in free fall, but in times like these, i always remember that it's just what investing is like for many people that have just got into investing during the bull market. This might be a harsh slap back to reality, but there are good and bad times i should know i have been around a while.

This might even be the perfect time to pick up some good deals. So if you're thinking about kickstarting, your investing journey then check out public.com as they're, giving away a free stock worth between three and a thousand dollars i'll leave that link down in the description just remember with investing your capital is at risk. As for how i'm adapting my strategy i'll tell you more about that later, as it does depend on the next topic, we're about to discuss the biggest companies in the world are in the tech space. I'm talking, google apple, microsoft and tesla, the big boys and i'm invested in all of them, but they have one big vulnerability: cyber attacks, if you cast your mind back to 2012, barack obama wrote in a future conflict an adversary unable to match our military supremacy on The battlefield might seek to exploit our computer vulnerabilities here at home, taking down vital banking systems could trigger a financial crisis, and if you think about russia, what comes to mind one word hackers.

So one way russia could choose to retaliate against sanctions put on them by the rest of the world is through cyber attacks. I remember: in the uk we had a less severe hacking incident that left our whole medical systems down and doctors just didn't know what to do. They couldn't even access patient files. 83 percent of the world now owns a smartphone, and it's estimated by 2026, nearly 8 billion people will have one.

We are getting more and more digital, which makes cyber attacks a whole lot worse. If russia hacked a big company like apple, imagine how much data they have on all of us, not to mention they could probably spy on you through your phone camera. This could lead to a lack of trust from investors in the tech space, which would then heavily impact the s p 500, as the five biggest tech companies now make up 17.5 of the index, i mean imagine trying to get a free 10 worth of bitcoin from Coinbase, but you can't because they're hacked nightmare but seriously grab your free bitcoin before it's too late i'll, stick the link in the description. Looking at the facts, one in three americans are impacted by a cyber attack and one takes place every 39 seconds, but they're not always severe, as you can probably imagine the worst case.

Scenario of these cyber attacks could be catastrophic. I'm talking cash machines, failing leaving people unable to access their money and public transport just buckling. We've never seen a full-blown cyber war between countries and have no idea what the true consequences could be for our financial systems. Just imagine how many cyber attacks have taken place in the last five minutes.

It's shocking the illness sent shockwaves throughout the entire economy, and i was worried. This was just the start of our crisis period. What i mean by this is, according to the fourth turning by william strauss and neil howe history, repeats itself in 80-year blocks roughly a human lifetime and is split up into 20-year turnings. You probably know these as generations.

The first 20-year turn-in is a high. Then an awakening next and unraveling and finally, a crisis. That's what we're in now. The good news is that, after the crisis comes the high and millennials are meant to be the heroes of this crisis and gen z will usher us into the next high period with their creativity.

So, as far as my investing strategy goes, i'm adjusting my tech stocks and holding firm on my index funds as well as ever so slightly reducing the rate at which i buy crypto, as i just can't predict exactly what will happen. But if the 80 year history blocks repeat themselves like they always seem to do, i think investors will weather the storm as long as we have enough time to hold. So with that said, if you're slightly older, it's probably a good time to diversify into safer investments. Today, i wanted to focus on the financial impacts of this crisis, but i do want to say my thoughts are, of course, with everyone in ukraine dealing with the unimaginable, so i'm going to leave the next video right up there if you're interested in learning a bit More about finance then feel free to give it a watch.

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