News headlines are buzzing with claims of an imminent World War III after reports of six missiles launched from Ukraine to Russia. It’s easy to get swept up in the panic, especially when family members, like my father, are reaching out with concerns: “Son, this is getting complicated. Biden is authorizing more aid—we’re heading toward World War III.” But let’s pause and analyze the facts. Is the situation as dire as it seems? And more importantly, what should you do with your finances during such uncertain times?
The Misconception About “Long-Range” Missiles
First, let’s dissect the claim about these missiles. The six projectiles in question are not the cutting-edge, long-range weapons they’re being portrayed as. They are Generation 1 missiles developed in the 1990s by Lockheed Martin, one of the world’s largest defense contractors. These missiles have a range between 165 to 300 kilometers—far from the thousands of kilometers typically classified as long-range.
Why does this matter? Because sensationalist headlines fail to differentiate between short-, medium-, and long-range missile classifications, creating unnecessary alarm. These are not advanced weapons signaling a global escalation; they’re older technology, costing approximately $1 million per unit. Expensive, yes, but hardly groundbreaking in terms of military innovation or geopolitical implications.
The Reality of the War’s Final Phase
Next, let’s put the conflict into context. Ukraine has been resisting Russian aggression for over 1,000 days, defying early predictions of a quick collapse. Despite massive military aid—over $100 billion from the United States alone—this is not an open-ended war. Many analysts, myself included, believe we are approaching the final phase of this conflict.
The key factor? U.S. politics. With a presidential election looming, support for Ukraine is a divisive topic. While President Biden has authorized historic levels of aid, Donald Trump has repeatedly stated his intention to negotiate peace. Should Trump return to office in 2025, it’s likely he will broker an agreement within months, as both Ukraine and Russia are increasingly fatigued by the ongoing war.
Who Benefits From Prolonged Wars?
It’s no secret that certain industries profit immensely from prolonged conflicts. Companies like Lockheed Martin thrive on government contracts for weapon production, and peace agreements often signal a decline in defense spending. Similarly, Russia’s military-industrial complex benefits from continued aggression. But for the people on the ground—Ukrainian and Russian soldiers alike—there is no appetite for endless war.
What Does This Mean for Your Finances?
For investors, the lesson here is to separate media-driven hysteria from economic reality. Defense stocks might rise during wartime, but that doesn’t mean you should bet your portfolio on endless conflict. Instead:
- Diversify your investments: Look at industries resilient to geopolitical risks, such as renewable energy or technology.
- Focus on long-term growth: Panic-driven decisions rarely yield good returns.
- Protect your savings: Keep an emergency fund intact to weather any short-term volatility in the markets.
The Path Forward: Hope for Peace
Ultimately, humanity benefits most from peace, not conflict. As the political landscape shifts and global powers reassess their strategies, the likelihood of a full-scale World War III remains low. Instead of panicking, let’s focus on advocating for solutions that protect human lives and bring stability to the region.
Keep calm, stay informed, and remember: investing in peace—both financially and morally—is always the wisest choice.