According to Jason Schenker, president of Prestige Economics, the second Cold War has already started.
Angela Stent, the senior advisor for Georgetown University’s Center for Eurasian, Russian, and East European Studies, stated that she thinks that we are headed into a 21st-century version of the Cold War. Still, it will be different from the Cold War between 1949 and 1989.
The unprecedented economic sanctions set against Russia following its invasion of Ukraine indicate that the subsequent Cold War will be predominantly fought on the economic front.
According to Alan Gin, associate professor of economics at the University of San Diego, it’s hard to imagine a shooting war breaking out between Russia and the U.S. He thinks these sanctions will [continue]. Then Russia will seek out other world partners, perhaps like China and some OPEC countries. He believes that many battles then will be on the economic front.
The crisis in Ukraine has already posed a further challenge to a market that has been recovering from the anticipations of the epidemic.
Gin stated that the market doesn’t enjoy uncertainty, which casts much uncertainty around the world economy.
In the longer term, the market’s health relies on where the crisis in Ukraine is headed next.
According to Schenker, equity markets take massive hits if we were to witness Kyiv fall or Ukraine fall. If tactical nukes were to be deployed, the downside would be immeasurable.