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The Ukraine-Russia Conflict | Financial Perspectives

Feb 25, 2022 3:56:16 PM / by iA

Fluctuations in global markets are among the many consequences of the Russian-Ukrainian conflict.

Some of your clients whose portfolios are affected by the situation may have questions that require clarification from you. The data we present here will come in useful to help you provide some perspective for them.

 

A close look at historical stock market reactions to military events

Although there is no certainty around a geopolitical conflict duration and its impact on the markets, historical data shows that, in most cases, markets recover in the following months.

The chart below shows the S&P 500 price variations during military events that have occurred since 1939. As we can see, 12 months after the start of each conflict, the markets had not only recovered, but also went up in nearly 75% of the cases:

 

Historical data, once again, indicates that sticking to the plan and staying invested in the long term is always the favourable strategy.

For more information on the subject, we invite you to watch this week's Economic News video, presented by Sébastien Mc Mahon.

 

Topics: Investments, Economic news

Written by iA