To reprisal against the launching of US military drones of recognition in Iran, US President Trump had to launch a military attack on Iran a few days ago, but this could kill 150 People and stop at the last minute. The outside world is worried that if the US and Iraq go to war, how should investors respond? The experts suggest that the best way is to stay still, if it is wrong to kill the panic actions.
According to MarketWatch, analyst Mark Hulbert noted that once the US and Iraq are really fighting, US investors will not panic. Both sides will not drag the US stock market. From historical experience, after 6 months of war, the price of US shares may be higher than the war. The previous level, so the fear of selling shares is sold at the lowest point.
Hulbert analyzed data from the geopolitical crisis since 1900 and concluded that "the market response to the outbreak of the war crisis, the Dow Jones industry fell around 6.8% on average and the # 39. The current Dow Jones index dropped to around 1750. Three months after the war broke out, the Dow Jones fell 2% before the fire. After six months, the price of Dow Jones rose by 1, 6% to the crisis ".
But there are exceptions, such as the seizure of Arab oil in October 1973, the Dow Jones index plummeted 18.6% and, after six months, Dow Jones was 12.6% lower than of the seizure.
Hulbert recalled that it is an erroneous decision to sell actions against the panic of the market; If investors can not stand the war and cause market volatility, it is time to sell stocks instead of waiting for the fall of the war.
(China News Times)