Quote Of The Week: How Stocks React To Global Crises

World on fire? It may have less of an impact on your portfolio than you think.

Worried about how your portfolio will react to growing global turmoil?

Here’s some research that may put you at ease:

“History shows that after an initial dip, share prices tend to bounce back smartly.”

“Fears about global turmoil may be misplaced. Over the past several decades, geopolitical crises have seldom had a lasting impact on the stock market. InvesTech Research looked at nearly a dozen geopolitical crises, from the German takeover of France in 1940 to the U.S. invasion of Iraq in 2003, and found that Standard & Poor’s 500-stock index, on average, fell 2.5% in the week following a crisis but was up 7% after six months and 11.5% after one year.

Marc A. Wojno, Senior Associate Editor, Kiplinger Personal Finance, How Stocks React to Global Crises,” August 01, 2017

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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