Can the Russia-Ukraine War Crash the US Stock Market?

by | Mar 18, 2022 | Stocks

There’s no shortage of expert opinions when a good amount of fear is present in the stock market…

But we have to keep in mind that the market’s driven by fear and greed at all times. And the reason why markets drop three times faster than they rise is because fear is a stronger emotion than greed.

So with that said (and to help calm everyone’s nerves), I want to show you how war affects the U.S. stock market… 

How War Affects the US Stock Market

I found this chart that shows how war has affected the U.S. stock market in the past… 

Chart of geopolitical events and stock market reactions (how war affects the U.S. stock market)

The chart tells us things like the day the event took place, the percentage drop that day, the S&P 500’s total drawdown, how long it took to bottom out, and how long it took to recover. 

What’s interesting about this is the average loss of the U.S. stock market during these times is only 1.2%…

And it only took 22 days on average to reach the bottom! 

That said, keep in mind that the Russia-Ukraine war is about to reach its fourth week…

When we’re in environments like this, most people tend to think there’ll be a recession, but that’s just not the case…  

It took us less than a year to recover from the Pearl Harbor attack, and the average recovery time is only 47 days! 

The point I’m making is you shouldn’t let fear guide you right now because the statistics tell us the market tends to price in most of the downside ahead of time. 

In other words, most of what we’re seeing now is already priced in… 

Check out my short video below to learn more about how war affects the U.S. stock market

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

P.S. At the start of the year, JD.com wasn’t doing much…

The stock had already been in a death spiral since its major stakeholder, Tencent Holdings, offloaded its shares in the e-commerce giant.

New Money Crew Head Trader Lance Ippolito thought the bloodshed was over… And the stock would soon rise… but he was dead wrong.

And he couldn’t care less!

That’s because even though JD flatlined… he STILL collected a 34% ROI over the course of that week…*

Get the secret behind it here! 

*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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