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RL106 – How does war impact the stock market?

Today on the Retirement Lifestyle Show, Roshan Loungani and Adrian Nicholson talk about how the markets behave in response to wars and conflicts. They analyze market trends in response to the Ukraine-Russia conflict, fed policies during times of war, and why time horizons are crucial for investing during uncertain times. Listen now to learn How does war impact the stock market?

[04:10] How Conflicts and Wars Affect the Markets

[08:10] The Markets Hate Uncertainty

[10:27] How the Markets Respond Before, During, and After Wars

[15:50] Why You Need to Know Your Investment Time Horizons

[17:20] Fed Policies in Response to Wars

[21:38] The Gold Versus Crypto Debate

[21:45] Cash at Hand During Times of War

[27:07] Value Versus Growth Investing During Uncertain Times

[32:40] Parting Thoughts

Links and Resources

 

To read the Full Show Notes scroll down or click here.

  • Roshan Loungani can be reached at roshan.loungani@aretewealth.com or at 202-536-4468.
  • Erik Olson can be reached at erik.olson@aretewealth.com or 815-940-4652.
  • Adrian Nicholson can be reached at adrian.nicholson@aretewealth.com or at 703-915-8905

Listen now to learn How does war impact the stock market?

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geopolitical conflict vs your portfolio

Full Show Notes:

How Conflicts and Wars Affect the Markets 

Tensions between Ukraine and Russia came to a head when Russian troops invaded Ukraine in late February 2022. And if you’ve been following the markets, you’ll have noticed that the potential for war has been weighing on the global economy for weeks. For example, the ever-increasing sanctions on Russia have had a negative effect on global oil prices. Also, we witnessed a sharp sell-off in the S&P 500 while Nasdaq briefly fell into bear market territory. Interestingly, both stock indexes have recovered in a wild trading session never witnessed since the start of the pandemic.

That said, how will the markets respond long-term if the Russia-Ukraine tension evolves into a full-blown war? What can you do as an investor to cushion yourself if things go south?

First, the full effects of the conflict on markets are confusing and still unknown at this time. Second, the markets are constantly moving up and down in reaction to every bit of information coming from Ukraine. So, it makes sense not to make rash decisions based on every information that comes your way. Although the potential for war might tempt you into overreacting and selling your investments, most financial experts advise against that. This is because any reaction you have to the current situation is more likely to hurt you than help you.

 

Links and Resources

Disclaimer Welcome, you are now listening to the retirement lifestyle show with Roshan Loungani Erik Olson and Adrian Nicholson. This show is an exploration of ideas to help you work towards your ideal retirement. Roshan Loungani and Erik Olson serve clients across the US. They offer financial planning and investment advice through Arete Wealth Advisors, LLC, an SEC registered investment advisor and securities through Arete Wealth Management LLC, member FINRA, SIPC, and NFA. Get ready for the financial independence of your dreams. All opinions expressed by podcast hosts and guests are solely their own are based on information they believe is reliable. Neither Arete Wealth nor its affiliates, warrants its completeness or accuracy, nor do their opinions reflect the opinion of Arete Wealth. This podcast is for general informational purposes only and should not be regarded as specific advice or recommendations for any individual. Before making any decisions consult a professional. Finally, our music is the chance by Jason Shaw and Audionautix. It’s part of the YouTube Audio Library and it’s licensed under a Creative Commons license.

Thank you for listening.

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