2014 has been an acceptable year for the stock market in the sense that the long-awaited big correction never really happened. It was the central banks that mostly decided the sentiment on the markets this year, although by the end of the year uncertainty grew again.

After a long bull run the financial markets are seemingly entering rough seas. Some carefully built up gains have been wiped away in a short period of time and there is growing uncertainty about the impact of the oil price. Many investors are looking for a safer haven.

VIX-Index Is At Its Highest Point

The VIX index, a measure of volatility is listed at its highest point since mid-October. Cheap oil is fun for consumers on the one hand, but it also underlines lower demand. This, in turn, suggests that global economic growth is getting weaker.

One of the biggest victims amidst this turmoil is Russia. The combination of economic sanctions and the oil price crash is cutting deep into the heart of the Russian economy and many investors have turned away, which only sped up the downfall.

On the 16th of December the Russian stock market was worth about half of what it was at the start of the year, much like the ruble, and the free fall went hand in hand with a big raise in interest rates. The people of Russia are unhappy and the question is whether the country will be able to turn this around in the short term…