Did stock prices fall or rise during the wars?
Yesterday, the market panicked over Russia's attack on Ukraine. Both stock indexes and cryptocurrencies fell from several to tens of percent.
The biggest losses were in the Russian stock market.
The price of almost all cryptocurrencies also fell.
Only commodities grew including primarily oil and gold.
By the way, we can see what the true scale of inflation is. Most goods have increased in price by several tens of percent.
The price of wheat has risen sharply on the market because one of the largest importers is Ukraine.
Gold, oil, gas and Bitcon charts over the last year.
Gold
Oil
Gas
Bitcoin
How have stock prices behaved during major military conflicts in the past? [Dow Jones charts]
The war in Iraq
The big drops around 2009 are related to the collapse of Lehman Brothers and the financial crisis, not the war.
The war in Vietnam
World War II
History shows that stock prices in the stock market have risen after the initial panic. This is primarily due to inflation and the printing of money, which is increased in times of war.
How will the cryptocurrency market behave during a war? We haven't had this situation yet, but cryptocurrency prices are correlated with the Dow Jones chart. Therefore, it can be assumed that they will behave similarly. A day later, the situation in the markets is much better and cryptocurrencies have recovered most of their losses.
Stocks
Crypto
Of course, if World War III broke out, stock market charts would likely see record declines and so would cryptocurrencies. Then again, stock prices and cryptocurrencies would be the least of our problems.
Sources:
Charts from Tradingview
https://www.tradingview.com/chart/?symbol=DJ%3ADJI
https://tradingeconomics.com/commodities
