Stock exchanges will gradually recover
22:35
According to Bartosz Wałecki, investment advisor, an employee of Michael / Ström Dom Maklerski, the first reaction of investors to the news of the escalation is not surprising. How long the conflict will last, what moves the EU countries together with the US will decide and what its further effects will be, we will learn soon, but it is worth being aware of how markets reacted to such events in the past. It goes, among others for the attack on Pearl Harbor, the TET offensive, or the September 11 WTC attacks.
"In most cases, after the first month after the initial event, the S & P500 was in the red, but only in two cases, it fell more than 4%. After three months, the US index in most cases was more than making up for its losses, and after a year after the event, the index repeatedly increased by over 10%. Will it be the same now? It all depends on the further escalation of the conflict and its global consequences. Of course, the behavior of stock exchange indices is not influenced only by geopolitical events, but they are a very important determinant of global sentiment in a given period," Bartosz Wałecki assessed.
(WBJ)