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A Perspective on War & Global Markets

A Perspective on War & Global Markets

February 24, 2022
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Many woke up to headlines of geopolitical concern as invasions into Ukraine by Russia have commenced. From a headline perspective, you may be enticed to do something different with your portfolio than what you did yesterday, last month or last year. The reality is that your portfolio was already built with current and potential wars and conflicts in mind. In fact, there has not been a time in your investing lifetime when there has not been war and conflict occurring throughout the world. Take a look at the chart above which outlines all wars and conflicts since 1970 through last year vs. what the global market performed over that time period.

As you will note, markets have provided returns to those that allow them to, by not reacting to headlines (a $100,000 investment grew to over $9.7 million). In the coming days, you will likely see more headlines that may entice you to want to do something different. While there will likely be market gyrations, reacting to them or the headlines and attempting to outguess market prices is where investors typically get into trouble. Staying the course has paid off in the past and there is no reason to expect it not to do so going forward. Keeping things in perspective and sticking to your plan is what you should do today, next month, next year and the remainder of your investing lifetime.