Do stock indexes lose [in the long term] during wars?

in #hive-1679223 years ago

Did stock prices fall or rise during the wars?

Stock indexes during the wars.png

Yesterday, the market panicked over Russia's attack on Ukraine. Both stock indexes and cryptocurrencies fell from several to tens of percent.

Stock index.jpg

The biggest losses were in the Russian stock market.

MOEX.jpg

The price of almost all cryptocurrencies also fell.

Crypto.jpg

Only commodities grew including primarily oil and gold.

1 year table.jpg

By the way, we can see what the true scale of inflation is. Most goods have increased in price by several tens of percent.

The price of wheat has risen sharply on the market because one of the largest importers is Ukraine.

WHEAT 1 year chart.jpg

Gold, oil, gas and Bitcon charts over the last year.

Gold

GOLD 1 year chart.jpg

Oil

OIL 1 year chart.jpg

Gas

GAS 1 year chart.jpg

Bitcoin

BTC 1 year chart.jpg

How have stock prices behaved during major military conflicts in the past? [Dow Jones charts]

The war in Iraq

DJ IRAQ.jpg

The big drops around 2009 are related to the collapse of Lehman Brothers and the financial crisis, not the war.

The war in Vietnam

DJ VIETNAM.jpg

World War II

DJ WWII.jpg

History shows that stock prices in the stock market have risen after the initial panic. This is primarily due to inflation and the printing of money, which is increased in times of war.

How will the cryptocurrency market behave during a war? We haven't had this situation yet, but cryptocurrency prices are correlated with the Dow Jones chart. Therefore, it can be assumed that they will behave similarly. A day later, the situation in the markets is much better and cryptocurrencies have recovered most of their losses.

Stocks

Stocks 2.jpg

Crypto

Crypto 2.jpg

Of course, if World War III broke out, stock market charts would likely see record declines and so would cryptocurrencies. Then again, stock prices and cryptocurrencies would be the least of our problems.

Sources:

Charts from Tradingview

https://www.tradingview.com/chart/?symbol=DJ%3ADJI

https://finance.yahoo.com

https://tradingeconomics.com/commodities

https://www.coingecko.com/



presearch

Posted Using LeoFinance Beta

Sort:  

Certain aspects in stocks will grow, others will be hit negatively. Historically markets bounce 16%, fuel and gold both enjoy periods such as this.

Turmoil like this directly after the last two years will have a knock on effect through every village in the world, some places will be affected harder than others.

Rich will get richer, poor normally shoulder more burden, something most cannot afford right now!

Congratulations @cryptobeautiful! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You distributed more than 800 upvotes.
Your next target is to reach 900 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Check out the last post from @hivebuzz:

Hive Power Up Month - Feedback from February day 22
Support the HiveBuzz project. Vote for our proposal!