The Threat Of The Russian
Bear Market As we speak, Russia is gearing up for a likely invasion of Ukraine, and the world is watching with growing unease. How will global markets react? Will America be drawn into the conflict? What is Putin’s ultimate goal…and can it be stopped? These questions and more abound, and we have far too few answers.
For a few major American companies, Russia’s sudden expansion might cost them BILLIONS, giving them a much more urgent reason to worry.
Meanwhile, America is looking to its leaders to reassure them and address the crisis…but those leaders might be more concerned about what’s in your crypto wallet to notice.
And even with a war brewing, there’s still money to be made here at home. If the return of the Russian Bear is on your mind, this particularly BEARISH stock might be worth your time.
Anyone born anywhere around or after 1985 most likely doesn’t remember the Cold War.
However, for those of us born before the 80s, memories of the constant tension between the United States and the USSR (better known as the Soviet Union) remain clear to this day.
Back then, there was an undying spirit of patriotism infused into all aspects of American life.
Commercials, movies, TV shows, books, art…all of it was steeped in a feeling of Americanism.
We had heroes like the Wolverines from “Red Dawn” taking on invaders and Rocky Balboa fighting Ivan Drago, the epitome of Soviet ideology.
And even though it seemed that nuclear war was possible at any moment, it was a great time to be alive.
However, once the 80s were over, so was the Cold War. The USSR underwent a fundamental change and “perestroika” was rampant throughout the Soviet Union.
Soon, the different republics were independent once again, and the formerly closed-off communist regime gave way to a more capitalistic society. Opportunity Abounded As Communism Retreated With communism on the decline, Western brands started moving into former Soviet territory.
Levi jeans, Coca-Cola, McDonald's, and many others were gobbled up by newly-liberated citizens eager to grab a piece of modern society.
America, for all intents and purposes, won that Cold War, and Russia faded into the background on the world stage for a few decades.
And yet, here we are, almost 35 years after the fall of the Berlin Wall, and Russia has made a sort of comeback.
After years spent backing America’s biggest modern rivals–including China and Iran–Russia itself is poised to be a threat once again, flexing its military muscle on its neighbor and former Soviet republic, Ukraine.
The world is watching as Russian President Vladimir Putin continues to mount troops on the Ukraine border in anticipation of an invasion.
Americans are split on the whole thing…
Some think we should be backing the Ukrainians and trying to keep democracy alive in the area, while others insist that this Russia-Ukraine problem should stay between Russia and Ukraine.
While there is no “right” answer, the whole ordeal is nonetheless wreaking havoc on the markets.
If Russia invades Ukraine, it will affect how the markets move, as war often does. American Brands Feel The Conflict However, as some Americans have pointed out, it shouldn’t affect us that much–but what should happen and what does happen are often two very different things.
In fact, there are three very distinctly American brands that will DEFINITELY feel the effects of a war between the two countries, especially if President Biden levies sanctions against the Russians.
The first is a brand I already mentioned. McDonald’s (MCD), one of the original companies that brought the West into Soviet territory, is poised to lose BIG in the coming fight.
While the burger-slinger can be found in countries all over the world, 4.2% of its sales come from the two countries combined.
If a war breaks out, Mickey D’s will feel pressure to stay out of it and therefore suspend business on both sides. If that happens, it’ll cost 4.2% of the fast-food chain’s $21 billion in annual sales.
However, McDonald’s isn’t the only brand poised to lose money.
PepsiCo (PEP) is in the same realm as McDonald’s, standing to lose 4.4% of its $70 billion in annual sales to the region.
I don’t know what you think, but in my opinion, losing $3.08 billion in sales could hurt Pepsi a lot.
But that’s nothing compared to sales that Philip Morris International (PM) could miss out on.
The maker of Marlboro cigarettes and other tobacco products could lose a whopping 8% of its $78 billion in sales to the combined countries, putting the company at a loss of $6.2 billion if Biden levies sanctions.
That’s a lot of cheddar…
So, if you’re one of those people who think that the US won’t be affected by a war between Ukraine and Russia, think again.
It will absolutely affect the American public…and with inflation already running rampant, this couldn’t come at a worse time.
We can only hope that cooler heads prevail.
Not because the US stands to lose money, but for all the lives at stake.
Pray for peace.
It is that time of the week when we drop one stock from our weekly Green Zone rating hotlist. This time, we’ve got one so hot you might need to let it cool for a bit before you dig in!
Every week, our Money & Markets team puts together a weekly hotlist for the Green Zone Fortunes service, consisting of the top-ten rated stocks we are pumped about as derived from the super cool Green Zone rating system.
So, since time is limited (or maybe just a social construct, for all you deep thinkers out there) the Money Moves team can only touch on so many of those stocks while we work to get the rest of our quality content out to you.
But fear not fellow, Money Movers, you can get all 10 hotlist stocks sent directly to your inbox when you sign up for Green Zone Fortunes. The resident smart dudes on the team, Adam O’Dell and Charles Sizemore, run this fine service and it is well worth your time…if you want to make money, that is.
I mean if you don’t want to make money, that’s your prerogative. But I am going to assume that you do if you are reading this fine financial newsletter. 
By clicking here you get access to the weekly stock hotlist and so much more!
And now that we have taken care of a few housekeeping items for the day, let’s dive into this week’s Money Moves pick from the hotlist, shall we?
This stock is bearish. But fear not, my friends, this isn’t a bear in the negative sense, but rather in the literal one.
The hotlist stock for this week is Build-a-Bear Workshop (BBW).
That’s right, the loveable place in the mall where you take children to make their very own teddy bears is also churning out profits for the adults as well. 
My heart is warming as I write this.
Although it does remind me of a time when I stayed in a creepy teddy bear suite in a hotel in Wisconsin…but that is a story for another time. Better to leave that one alone for now…
Build-a-Bear has been a hot stock lately and as of this writing has gained 14.5% over the past month with plenty of room to grow. As of this writing, the stock is going for less than $25 a share, and many experts believe it is undervalued.
So it has that going for it, which is nice.
Investors are eagerly awaiting the company’s next earnings report. The guys over at Zacks are projecting earnings of $0.92 per share and net sales of $129.99 million, which are increases of 95.74% and 38.67% from a year ago.
But I despise earnings projections because if projections are missed, Wall Street loses its everlovin’ mind and the stock falls. But those are the facts, so do with these projections what you will.
But most importantly, our Green Zone rating is “strong bullish” and not “strong bearish” on Build-a-Bear. (See what I did there?)  (Click here to view larger image.) So, if you want to get hotlist picks like Build-a-Bear sent directly to your inbox click here.
(“But he already said that, Francis. Why is he saying it again?”)
I am writing this again because I really want all of you to have the insight that I get every day from Adam O’Dell and Charles Sizemore. It is yours to be had.
Now, the ball is in your court. What are you going to do? Be a Michael Jordan with his superpowers? Or be Michael Jordan without his superpowers? 
(Space Jam fans get this reference. If you know, you know)
Click here to subscribe to Green Zone Fortunes and see what other hot stocks made last week’s list!
Control is an illusion.
While we like to believe that we have control over things, the truth is that we usually control very little.
Here’s what I mean…
When driving a car, you feel like you’re in control of the 2,000-pound machine. And while technically you’re right because you DO control over the speed and direction that the car goes, that control can be taken away from you at a moment’s notice.
You could have a blowout, the universal joint in the drive shaft could go, you could throw a fan belt, or you could get hit by another driver while doing 70 on the highway. You could even hit a bump and bounce right off the road.
Your control is an illusion, but we cling to that illusion because, without it, most humans wouldn’t be able to function.
That’s why we usually look for control in every aspect of our lives.
The very idea goes against the laws of nature and the universe, where chaos and chance reign supreme, but still we try.
Oh, don’t get me wrong, there is order to the universe, but there’s no control.
The two terms are mutually exclusive.
Order is different from control, and we see everyday examples of that in the cryptocurrency world.
While there really are no regulations or policies that keep things under “control,” there is nevertheless an order to the way things work. No one entity needs to establish control for the cryptoverse to function…
But holy CRAP do politicians still want to control it. Biden Administration Cracking Down There are rumors swirling that President Joe Biden will be issuing an executive order next week that will direct agencies across the governmental spectrum to start studying cryptocurrencies, developing an idea for a central bank digital currency (CBDC), and looking into the creation of a government-wide strategy to regulate digital assets.
In other words, Biden wants to get these dang-nabbed cryptocurrencies under control.
Too many people are making way too much money by trading these digital coins, and by God, if the government doesn’t get its piece, then nobody will get any.
According to one official familiar with the matter, the expected order will commission a study of a CBDC and ask a range of agencies – including the Departments of Treasury, State, Justice, and Homeland Security – to develop a report on the future of money and payment systems.
Also, according to Yahoo! Finance, “The Director of the Office of Science and Tech policy will do a technical evaluation of what might be needed to support a CBDC system.”
You see?
Control.
But we have to ask…why now? Is There Nothing Better To Do? With everything that is happening–especially with Russia knocking on Ukraine’s door–it’s weird that the Biden administration is choosing NOW to enact a sweeping regulation on crypto.
Even the FBI is getting in on the act by forming a new crypto unit.
You’d think we’d have more pressing matters at hand…
But the order is coming, and it will all be wrapped in the guise that it’s happening to protect consumers, investors, and businesses.
So, the Treasury, along with the SEC, the Commodities Futures and Trading Commission, and federal banking agencies, will be in charge of figuring out what that protection looks like and then reporting to the president on how to protect against potential risks.
But it’s also important to realize that this isn’t just the US government, either.
Apparently, part of the order will be for the US to coordinate with other countries around the world to standardize rules for crypto.
This is a planet-wide movement, and yet this is the first we’re hearing about it.
So, if you’re wondering why your crypto wallet looks a little lighter today, you can thank Grandpa Joe and his merry band of regulators for it.
This isn’t what the market needed after the January we had…
But what are you gonna do?
Politicians are going to politic.
They forget what their job is most of the time.
But I’ll stop there. I reported on the political world for three years…
No need to rehash old stuff.
Look for the executive order next week…and all the wonderful developments it will entail.
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