One of the biggest risks in the world is the potential of a conflict between Russia and Ukraine that would potentially lead to NATO countries like the United States or Great Britain to intervene on Ukraine's behalf. There has been a buildup of Russian troops on the border and signs of Russia moving assets and resources closer to the frontline.

The increasing stakes of the buildup in tensions is leading to oil prices moving up despite downwards pressure in many asset prices. Since early December, oil prices are up by 41%. This is adding to inflationary pressures and has some negative impact on discretionary spending.

President Biden's decision to move troops closer to Ukraine is seen as a deterrent to the Russian buildup along the border. In a statement, Pentagon press secretary John Kirby said "These are not permanent moves," indicating that the forces will not fight in Ukraine.

The troops are being sent to bolster NATO allies like Poland, Romania, and Germany as these countries are also threatened by recent Russian aggression. Kirby added that "It's ironic. The very thing that [Putin] says he doesn't want, he's going to end up getting: a strong NATO on NATO's eastern flank and his western flank. He has himself to thank for that."

President Joe Biden also said that the move was consistent with this warning to President Vladimir Putin about his aggressive actions pointing to Article 5 of NATO which deals with collective defense. Currently, the U.S. has 60,000 troops in Europe, while Russia has 127,000 troops along the Ukrainian border.

The Pentagon spokesperson also added that more troops could be deployed or relocated if necessary. The military has also activated several thousand reserves and placed them on heightened alert in the event of a NATO defense.

Another curious fact is that Russia has made incursions into neighboring countries before like in 2008 in Georgia during the Beijing Summer Olympics and in Crimea in 2014 during the Sochi Winter Olympics which is raising fears that some action may be imminent especially in groups where separatist groups dominate.