Buy The Invasion? What Happened to The Market When The Wars Started
According to CNBC by the time of publication, Putin sends troops in eastern Ukraine; Kyiv may break off diplomatic ties with Moscow. War Fears push Brent Crude Oil Price high.Markets are worrying about the potential risk of a Russian "invasion" of Ukraine in asset prices ranging from commodities such as wheat to energy prices and the region's sovereign dollar bonds, to safe-haven assets and even global equities.
Capital_Insights has compiled three charts showing the impact of conflicts or wars between Countries and Regions around the world on the stock markets and assets over the past century. Hope it relieves your anxiety.
Chart 1: Buy the Invasion?
Chart 2: The Historical Performances of S&P 500 Index After Geopolitical Events
Chart 3: The Volatility Data of Major Global Assets During Regional Conflicts.
Data shows these events don't usually collapse the market, whilepeople just think they do. 4/5 of those conflicts didn't cause disaster to the market.
Institutional Insights:
JPMorgan said the tensions could lead to a "material spike" in oil prices.Oil prices hit seven-year highs close to $100 after Russia moves troops into Ukraine
Ravindra Rao, CMT, VP-Head Commodity Research at Kotak Securities: "If the Ukraine-Russia issue escalates further, gold might be supported amid safe-haven buying. But if there is any resolution through diplomatic talks, a corrective move is possible."
Question For You:
What’s Your Opinion, will you "buy the invasion"?
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It might be counterintuitive but buy the invasion is the main thesis- echoing a pharse made famous by a certain contrarian investor "Buy when there's blood in the streets, ..." - Rothschild
Likely still more downside risk, some says TA $S&P 500(.SPX)$ forming a double bottom W pattern will could result in bounce up at least for a while if no further negative news
that means time to buy???
as the invasion has not started. everyday there is new bad news
for now cash is gold. hold on tight.
when war is about to end can start buying