Investors are not panicking over the invasion of Ukraine by Russia and the market volatility that it could create, although some have questions, according to advisors who discussed clients’ reactions today.

Advisor interviewed by Financial Advisor said they are not getting overwhelmed with calls, but noted they have been reaching out to some clients in the last few weeks to discuss the international situation.

Clients at Omnia Family Wealth, a financial services firm with more than $2 billion in assets under advisement based in Aventura, Fla., are well positioned to withstand any volatility, Michael Wagner, co-founder and chief operating officer, said.

“We have had a low allocation to equities for some time already,” Wagner said. “Instead, investors may want to look at investing in commodities rather than just stocks and bonds.

“We have spent a lot of time talking about potential risks, so our client are not going to be surprised there is a storm happening,” he added. “The real question is: What does this mean for inflation? The longer term impact is that energy and goods are going to be more expensive. Investors should move beyond just stocks and bonds because that is not going to give the same diversity it did in the past.”

Marc Scudillo, managing officer of EisnerAmper's wealth management and corporate benefits practice, said he has been getting questions from clients about the events in Ukraine. “They want to know how far the situation will go and what it means for them,” Scudillo said. "There are heightened emotions but we assure them we understand their concerns and they are not going to be down 10%, like the general market. We tell them our planning has set them up to react to both good and bad markets.”

Some clients want to know how they can take advantage of the downturn in the market. “They said they have been wary of buying when the market was so high and they want to know how to use the crisis. They have confidence” in their planning, he said.

Advisors should be telling their clients who have questions to sit still, and definitely not to sell their positions, said Scheherazade Rehman, professor of international finance at George Washington University.

The larger picture is that the world does not know what will happen yet, “although it is not going to be good for Putin: I think he has overreached,” Rehman said. “The market has been hit by several factors recently and it is nervous—and rightly so. But, despite today’s downturn, the market tends to rebound even before these crises wind down.”

The sectors that will be impacted by higher prices are energy and food, she added. Rehman said her personal recommendation for investments now are the large-cap tech firms that have solid financials.

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