Stock market expert warns potential declaration of WWIII could be 'catastrophic'
Founder of Michael Lee Strategy discusses the economic impact of Russia's invasion of Ukraine
Economic impact of Russia's invasion of Ukraine
Founder of Michael Lee Strategy Michael Lee warns if Russian President Vladimir Putin decides he wants to take over all of Ukraine, it will be the beginning of World War III, which could be 'catastrophic for everything.'
Founder of Michael Lee Strategy Michael Lee warned on Thursday that if Russian President Vladimir Putin decides he wants to take over all of Ukraine, it will be the beginning of World War III, which could be "catastrophic for everything."
Speaking on "Varney & Co." on Thursday, the market expert also provided insight into the economic impact of Russia invading Ukraine.
Lee provided the insight as U.S. stocks plunged before curbing some of the losses as Russian President Vladimir Putin launched his long-anticipated military operation in Ukraine prompting investors to move out of risk and into safety.
The Dow Jones Industrial Average fell over 700 points or 2%, while the S&P 500 fell over 1%
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43444.99 | -305.87 | -0.70% |
| SP500 | S&P 500 | 5870.62 | -78.55 | -1.32% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18680.120875 | -427.53 | -2.24% |
The Dow and S&P are now in bear markets, off 10% from the most recent peak.
RUSSIA INVADES UKRAINE: LIVE UPDATES
The price of oil jumped on concern about possible disruption of Russian supplies. U.S. crude neared $99 per barrel, before easing, while Brent, the global benchmark, crossed $100 per barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 69.75 | -1.54 | -2.16% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 28.31 | -0.55 | -1.91% |
Lee noted on Thursday that the real economic impact on the U.S. of the tensions overseas "depends on how widespread these operations are."
He noted that the price of oil has been moving higher, pointing out that the question is "how much higher?"
Global oil market seeing ‘worst-case scenario’: Analyst
Price Futures Group senior market analyst Phil Flynn argues that Russia invading Ukraine is a 'total disaster' for the global oil market.
Lee argued that if Putin decides he wants to take over all of Ukraine, that would be the beginning of World War III and could have "catastrophic" consequences for "everything," including oil prices.
"If he’s [Putin is] just running military operations all over the country so he meets very little resistance to take off that little slice that he said is now independent, then I don’t think we are looking for a major economic impact across the economy," Lee continued.
"But what we have now is a layer of uncertainty on top of markets that is going to weigh it down."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
He also noted his clients have been calling him on Thursday interested in buying the dip and have been asking him for his advice as to what they should buy.