U.S. stocks are climbing, thanks to dissipating tensions in Ukraine. The market braced itself for losses and unpredictable shifts when Russian President Vladimir Putin placed troops in Crimea. Putin spoke out brashly, describing Ukrainian protests as an “anti-constitutional coup and armed seizure of power” and defending Russia’s right “to take all measures to protect the rights of those people,” according to CNN. Investors, and in fact the American people, were rightly concerned.
Putin’s recently conceded that “the Ukraine crisis won’t immediately escalate,” Business Week reports. The announcement resulted in an upswing in U.S. market shares, “with the Standard & Poor’s 500 Index rebounding to a record from its biggest loss in a month,” Business Week adds. Simply put, the delay — and hopefully the eventual end of the Ukrainian crisis — is putting money in our pockets. The rising of U.S. market futures is not the only good news for the nation’s economy.
The American housing market is also turning around, giving many hope that the economy may be permanently on the mend (that is, unlikely to experience another recession any time soon). “With a nation eagerly waiting for any indication of an upturn in the economy, critics are hailing a recent upsurge in home sales as a promising sign of hope,” Digital Journal says. “New home sales catapulted to one the fastest rates in over five years.”
Despite recent gains, experts believe that people need to be pragmatic with their businesses. After the stock market plunged in 2008, it became apparent that a large number of real estate and banking companies around the country had not taken the time to to prepare for every possible contingency. Proper preparations now could easily help to avert such heavy losses in the future, should the market dip down again.
Digital Journal adds that the upsurge in the housing market, much like the temporary dissipation of the Ukrainian crisis, strengthens the U.S. stock market. The boost in home sales, coupled with skyrocketing stock shares, was largely unexpected. “A surprise to economists, the surge in sales was the exact opposite of what many predicted as we entered the new year,” Digital Journal explains. “This unexpected and uplifting news, which was released Wednesday, prompted positive vibes on Wall Street. Economists predict further gains in sales throughout the course of the year, citing a strengthened economy secured by job growth and help from federal spending cuts and easing tax rates.”