Current Events | How Can You Prepare For The Unknown?

February 04, 2022 7 min read

Current Events | How Can You Prepare For The Unknown?

In the following article we discuss some of the biggest events of January 2022. We detail a brief description of what happened, when it happened, why it happened and how you could have prepared for it. 

Some of these events may have already impacted you personally while others may impact you in the future.

Whether you’ve been personally affected or not it's a good idea to stay informed on what's going on in the world so you can best prepare.

looking at stock market on phone

Stock Market Fluctuations

Current Event Name: January Stock Market Decline

Date January: 4th 2022

The stock market took a huge hit across the board this January.  Beginning on January 4th theDow Jones and S&P 500 fell at rates we haven't seen since the beginning of the 2020 pandemic.

Even worse, the Nasdaq fell at rates we haven't seen since 2008.

Who did it affect? This means many of our investment accounts, pensions, and 401Ks all took losses this month.

Some worse than others, but no one left January unaffected by the stock market..

Why did this happen?

Many of us wonder why in January 2022 this is happening when covid cases are declining. The economy has opened back up and unemployment rates are back to normal.

Well there are many reasons and many have to do with the concerns around the federal reserve or the FED.

One concern everyone has been talking about for months is inflation. In 2022 experts are forecasting a potential inflation rate of 4% this year. This number concerns the FED and will cause them to increase interest rates.

Interest rates are not raised yet, but banks stated that the FED does plan to raise interest rates.

The FED will raise interest rates 4 times this year to keep inflation under control. Even with the FEDs actions inflation is still expected to take place.


Action item for preparedness:

The best way you can prepare for the higher interest rates coming this year is byinvesting in low risk companies.

Investing in large established companies like Coca-cola, Visa, Apple and Amazon is the best strategy during periods of higher interest rates.

This is because these companies have more working capital and don't need to borrow. Unlike large companies, growth companies rely on low interest rates to raise capital.

So investing in these larger companies will prepare you for the coming inflation and rising interest rates.

shoveling snow from car

NE Storms

Current Event Name: Northeast Snow Storm

Date January 17, 2022

This January the North eastern states of the U.S. experiencedrecord snowfall. This caused lots of chaos throughout Northeastern states. Especially in states who normally get very little snowfall.

Who did it affect?

The effects of this snow storm reached from North Carolina to New England. Ohio faced up to 27 inches of snow in their northeastern region.

Buffalo, New York experienced 17 inches of snow and winds reaching 40 miles per hour. Even North Carolina, where snowfall averages 5 inches a year, received up to 9 inches.

Because of the amount of snow, chaos shortly followed. Over 1,700 flights were canceled, thousands were left without power, over 400 car crashes took place and two were left dead.

Even after the snow storm many of these states have struggled to clear the roads.

Why did this happen?

We don’t know exactly what caused the size of the storm. But, the storm itself was caused by a massive cold front that swept across the North East.

Action item for preparedness:

To avoid the chaos that comes from snowstorms you should prepare before the storm takes place.

Preparing for a snow storm means preparing to stay inside for a few days to avoid driving on the roads.

The best way to ensure that you don't need to leave your house during these storms is with emergency food.

During snow storms many are caught off guard by the size and don't prepare in the days leading up to the storm.

Even if you do prepare you run the risk of not being able to cook the food you have when your power or gas lines stop working.Emergency food gives you a safety net and will keep your family safe during a storm. A nice supply of freeze dried veggies or freeze dried fruit can provide a lot of comfort on an icy day.

Potential Russian Invasion of Ukraine

Current Event Name: Russian Ukraine Tensions

Date January 11, 2022

As Russia moves troops closer to the Ukrainian border the rest of the world has started to take notice.

Because of this NATO and their allies have begun to speak out against the Russian aggression..

Who did it affect?

The threat of a Russian invasion of Ukraine stands to affect the entire world. With NATO and their allies already speaking out against Russia’s recent actions. Continuation of these actions could begin a worldwide conflict.

Why did this happen?

The tensions between Russia and Ukraine have been going on since 1990. Russian leaders have always felt that Ukraine should be part of Russia.

This is because of their Slovak heritage and geographic location. Russia also wants control of Ukraine for strategic military reasons.

As of January 2022 Ukraine faces the threat of Russia cutting off their oil supplies. Russia supplies Ukraine with all their oil. During the winter lack of oil would cause economic collapse in Ukraine.

NATO has taken great precautions to not let this happen to their ally. NATO has been importing oil into Ukraine and threatening sanctions on Russia.

These threats are dependent on Russia cutting off Ukraines oil supplies. Russia has not taken these threats lightly and moved troops closer to Ukraine.

These troops have recently begun running drills by the Ukrainian border. The Russian military drills have put the world even more on edge.

Because of the Russian drills NATO has begun arming the Ukrainian military. There are talks to end the conflict but Russia and NATO are still far apart in negotiations.

Action item for preparedness:

To prepare for this event we recommend keeping a close eye onnews related to the conflict.

Following the news of the conflict will give you a better idea if the conflict is worsening.

Right now the U.S. has  tensions with Russia that we haven't had since the cold war. Looking at history we know that these tensions could lead to war.

Going to war with a superpower like Russia would change our way of life. So be wary and stay informed.

 

empty storage shelves

Shortages

Current Event Name: 2022 January shortages

Date: January 2022

As we move into post pandemic life we are still plagued with supply chain issues. These issues have caused shortages in many industries across the board.

These shortages range fromcomputer chips to lumber and much more.

Who did it affect?

These shortages affect everyone in the United States. The shortages cause price increases on products across the board.

Depending on what industry you work in some of these shortages will affect you more than others. For example the chip shortage has affected anyone in the electronics industry.

This means the auto industry to consumer electronics industry are all affected by the microchips shortage.

And that's not the only thing that is in short supply in the United States right now. Lumber, bicycles, baby formula, potatoes, blood and oil are also scarce as of January 2022.

Why did this happen?

The shortages all stem from the Covid-19 pandemic. The Pandemic caused supply chain disruptions.

When the pandemic struck the whole world shut down. This shut down stopped all industry as no one was going to work and few were buying products from stores.

When the economy reopened demand for products skyrocketed. People had lots of extra money from the stimulus checks and wanted to spend it.

Many of the products that people were buying were running low on raw materials. This created a massive backlog in demand.

This backlog of demand is still prevalent today, two years after the pandemic started, and will continue throughout the year. 

Action item for preparedness:

To prepare for the shortages we recommend that you start stocking up now. Preparation for these shortages means paying attention to what is in short supply.

Once you know what is in short supply make sure you buy those products when possible.

Even if you don't need those products at the moment it's a good idea to prepare for them to not be available in the near future.

One of the best things you can start stocking up on is emergency supplies likeemergency food and medical supplies.

kim jung un portrait

North Korea Launches Missiles

Current Event Name: North Korea Launches Multiple Missile Tests 

Date January 5 2022

North Korean Leader Kim Jung Un has launched many missile tests this month. This comes after a long quiet period where Kim Jung Un had not launched any missiles whatsoever.

So far North Korea has launched 5 missiles. That's more than he launched back in 2016 when the world first took notice of Kim Jung Un's excessive missile testing.

Who did it affect?

The launch of these missiles affects the entire world. This is because the world is already occupied with Russian and Ukrainian tensions.

Now the world has to shift some focus to North Korea. Because South Korea and the United States have not had great relationships with North Korea, they are the two countries in greatest danger of aggression.

With the US so involved with the Ukraine and Russia tensions South Korea is left especially vulnerable to a North Korean attack.

Why did this happen?

Experts who follow North Korea have a few ideas on why North Korea recently decided to test missiles.

Theexperts believe that North Korea is using these missile tests to scare the rest of the world into negotiations. This comes at a strategic time while everyone is occupied with Russia. North Korea wants to get the world in talks with them again to receive foreign aid.

This aid would help boost North Korea's struggling economy to a sustainable state.

Action item for preparedness:

Preparing for North Korea is similar to preparing for the Russian and Ukraine tensions. Right now there's not much going on that you can prepare for but, you should befollowing the situation closely.

If the test becomes more extreme it is a good idea to prepare for potential attacks.

These attacks will likely come as missile strikes to states closer to the Atlantic ocean. If these missile strikes do happen it will lead to certain war with North Korea and their allies.