How does war affect the stock market?
The shipment and cost of goods will rise and fear will cause the stock market to fall.
How much does politics affect the stock market?
Political news can cause short-term fluctuations in the market for sure. Long term investors can typically view this as just “noise” as it is not actually reflective of the companies in the stock market. A good example would be the current US-China feud which hopefully does not escalate into a full-out trade war.Policies and laws passed by politicians can have a larger affect on the stock market long-term. Municipal and regional politics can affect individual companies (generic example: a state raising minimum wage where a company has thousands of minimum-wage workers). If you’re talking about the broader stock market, then all significant changes will happen at the federal level.Hope this helps!
How does war impact stock markets?
Kargil War and SensexIndia has Successfully done surgical Strikes in Pakistan Today. The Stock Market have become nervous and sold off sharply . Lets see what happened to Sensex when Kargil War happened, Below is the market of Sensex in 1999-2000.Clearly Markets Rallied a lot after the Kargil War after an Initial Phase of Correction.I have stated many times that we have two important factors that affect the market.1)Earnings2)Emerging Markets (flow of funds)The Below chart is of MSCI Emerging Market Index (Red) and BSE SENSEX. Clearly there is strong Correlation in them and over long period of time i strongly believe the correlation will remain.Earnings don’t change with these Surgical strikes, Neither does it affect the Emerging Market Index.Will i be a buyer today?Well i have been a buyer today selectively. THERE IS A OLD SAYING THAT BUY WHEN THERE IS BLOOD IN THE MARKET, BUT WHAT IF ITS YOUR OWN BLOOD. Capital is limited and we all have to allocate it smartly.Can markets fall ?Have a look at this video for deeper analysis.
What effects did the cold war have on the stock market ?
Now THERE would be an interesting subject to research. I remember the Cuban Missile Crisis as a child. I was sent home from school - my mother was white as a ghost listening to the radio - we all knew we'd be dead by that evening. And we almost were as it turned out. So stuff like Cuba just scared the crap out of people - and I'd imagine they weren't trading on stock exchange much that day... But it would be an interesting study to see how those concerns of the time actually registered in trading.
How did the Stock Market Crash of 1929 effect the U.S?
Before 1929 ended, banks all over the country were closing their doors. Business everywhere cut back production, and many concerns, finding themselves without customers, were forced out of business. Factories and mines were shut down. Empty railroad cars piled up on the sidings. By 1930 between 6 and 7 million Americans were unemployed. The result was a chain reaction. Unemployment meant fewer customers; a decrease in customers caused further cutbacks in production; these cutbacks, in turn, resulted in more unemployment. By 1932 nearly 12 million Americans were out of work. The depression struck at all classes. Many well-to-do Americans helplessly watched their fortunes, invested in stocks or businesses, disappear. But the industrial workers and the farmers suffered most. Most wage earners had no savings to tide them over a period of unemployment. In every city thousands of unfortunate men and women stood in lines to get free meals of bread and soup. Families forced out of their homes moved to makeshift huts that they built on unused land at the edges of the city, using scrap lumber, packing boxes, and corrugated iron. For the farmers the depression came as a final blow. Most farm families had never shared fully in the prosperity of the twenties. But bad as conditions were before, they became steadily worse between 1929 and 1932. Fram prices fell lower and lower. As their incomes shrank, more and more farmers lost their farms. In some midwestern states desperate farmers used force to prevent sheriffs from foreclosing mortgages on their farms. Many thousands of jobless people from cities and farms wandered over the land seeking jobs at any wages, hitchhiking or hiding in freight trains, and sleeping on park benches. Never had America known such widespread suffering.