The risk of war in Europe has increased as has uncertainty about its impact.

The risk of war in eastern Europe may have replaced the virus as the biggest worry for investors. The infection rate of the virus continues to drop each week and indications are it will continue to do so. One article said the virus has run out of people to infect. This is leading to the end of restrictions such as masks in many areas of the country. This will lead to further opening of the economy, especially the service sector. More people will travel (except trucks in Canada) and dine out. Now the limit to capacity is shifting to worker shortages in these sectors. Many service sector jobs are lower paying, entry level positions. Companies are still going to need to raise wages to fill open positions and increase capacity to meet higher demand going forward.

 

PROBANK AUSTIN ADVISOR - FEBRUARY 22, 2022