The Russian invasion has caused a rethink of the wholesale embrace by the EU and the Biden Administration away from fossil fuels at breakneck speed. Foreign competitors and enemies are taking advantage of the West's plan for a "pollution free" planet. Eighty percent of energy we use on earth is still provided by fossil fuels. More realistic green energy planning by the US and other allies may need to occur while technology catches up.

Twin terrors of multiple Fed rate rises and war in Ukraine upset the bull's apple cart. The S&P 500 was off 14.5% from recent highs on the day Russia invaded Ukraine. Markets then rallied sharply into month-end, with the S&P 500 down 8.2% for 2022.

The current geopolitical events taking place between Russia, Ukraine, the U.S., and other NATO countries is creating quite a stir on media outlets and financial markets. As part of our ongoing efforts to keep Crown clients informed on events that impact the broad market, we wanted to send an update prior to the weekend.

Future stock prices depend on future earnings which are expected to rise about 9% in 2022, according to Factset. Q4 earnings season is ongoing and results have been promising.

Since the March 2020 market drop of 30%, stocks have been on a roll. The S&P 500 has rallied from a February 23rd, 2020 low of 2,192 to 4,818 high on January 3rd, 2022, representing nearly a 220% increase. Real estate prices have also soared as well. Investors are richer while the non-investor class suffers from rising inflation, particularly in food and energy, both of which are excluded in government calculations.

Our economy has recovered mightily since the dark days and deep bottom of 2020. In the U.S. we are fortunate in many ways, but we may be pressing our luck.