Stock markets recover more quickly after international conflict and crises than from economic proble...
Stock markets recover more quickly after international conflict and crises than from economic problems, according to research by Chase de Vere. The Dow Jones Industrial Average fell 4.3% in the weeks between the United Nation's 1991 ultimatum to Iraq and its deadline for Iraqi withdrawal from Kuwait, but climbed 20% in the two months following the deadline passing. Similarly, the Dow Jones sank by 12% in the month following North Korea's invasion of South Korea in 1950 only to rise by 20% in the next three months. This rapid recovery effect is not confined to the US, as demonstrated ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes