In order to defeat the Iranian scourging of US military scouting unmanned aerial vehicles, US President Trump had to launch a military attack on Iran a few days ago, but it could kill 150 people and stop at the last minute. The outside world is concerned that if the US and Iraq enter the war, how should the investors react? Experts suggest that it is the best way to calm down if it is wrong to kill panic shares.
According to MarketWatch, analyst Mark Hulbert pointed out that after US and Iraq are indeed struggling, US shareholders may not have to panic and both sides will not withdraw the US stock market. Historical experience, after 6 months of war, the US stock price could be higher than war. The former level, so the fear of selling the stock sells at the lowest point.
Hulbert has analyzed data on the geopolitical crisis since 1900 and concluded that "the market response to the outbreak of the war, the Dow Jones industry fell by about 6.8% on average, and the current Dow Jones index fell by about 1750. Three months after the outbreak of the war, Dow Jones fell 2% ahead of the fire, and after six months the price of Dow Jones rose 1.6% compared to the crisis.
However, there are some exceptions, such as the Arab embarga on oil in October 1973, the Dow Jones index dropped by 18.6%, and after six months Dow Jones was 12.6% lower than before embarkation.
Hulbert recalled the wrong decision to sell shares under panic conditions in the market: if investors can not stand the war and cause market volatility, it is time to sell shares instead of waiting for the war.
(Newsletter China Times)