In order to react to the shooting of Iran's US military reconnaissance drones, US President Trump was due to launch a military assault on Iran a few days ago, but it 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 do investors react? Experts suggest that the best way is to stand where it is wrong to kill the stock in panic.
According to MarketWatch, analyst Mark Halbert said that as soon as the US and Iraq are really struggling, American stock investors should not panic. The former level, so the fear of selling shares is sold at the lowest point.
Gulbert analyzed the geopolitical data of the crisis since 1900 and came to the conclusion that "the response of the market to the beginning of the military crisis, the Dow Jones industry fell by an average of 6.8%, and the current Dow Jones index fell about 1750 points. Three months after the war began. Dow Jones fell 2% before the fire, after six months the price of Dow Jones grew by 1.6% from the crisis.
But there are exceptions, such as the Arab oil embargo in October 1973, the Dow Jones fell by 18.6%, and after six months, Dow Jones was 12.6% lower than the embargo.
Gulbert reminded that this is the wrong decision to sell shares in conditions of panic in the market, if investors can not withstand war and cause volatility of the market, it's time to sell shares instead of waiting for war.
(China Times Newsletter)