Financial Advisor Anticipates Full Market Recovery If Russian Conflict Ends

One Cookeville Financial Advisor says the stock market will recover quickly if a resolution comes to the Russia-Ukraine conflict.

Jason Murphy of Diamond Financial Investment Group said the war extended an ongoing market correction, a normal drop that occurs about every 18 months.

“I watch three major leading economic indicators in the market on a regular basis,” Murphy said. “Right now all of those are still very bright green. Everything is looking good as far as the market goes.”

Murphy said the correction began in January when the federal government talked about raising interest rates. Murphy said drops usual last about two months with he market falling some 10 percent. Murphy said the unrest between Russia and Ukraine worsened this.

“What that has done is exasperated the situation and caused the market to continue to have its up and downs,” Murphy said. “The DOW is back up over 750 points as of right now.”

Murphy said recovery usually takes about 3-6 months. That is if a resolution to the European conflict comes to an end. Murphy said sell-offs could continue if Putin continues to push.

Murphy said the DOW consists of the 30 largest companies, so taking that as an indicator of the market is not always wise. Murphy said instead, he prefers looking at S&P 500 or the New York Stock Exchange.