When to Invest During a War
Does history’s “Buy the Invasion” strategy still work?
A lot has happened this past week. As a result, the market continued its volatile stretch.
Markets plummeted Wednesday and into Thursday on the news of Russia invading Ukraine. Surprisingly, Thursday did a complete U-turn. While Thursday morning futures were negative, the market managed to squeeze out a solid gain on Thursday. That momentum carried over to Friday, as the S&P 500 was up over 2%.
Futures are again looking negative heading into Monday. While the latest news is that Ukraine and Russian officials have agreed to meet to talk, this turmoil may continue for a long time.
Most countries are on edge with how this situation will play out, and with that, it's important to look at history to see how markets reacted to war.
Previous Wars
I am not a historian or politician — so I have no insight on what will happen between Russia and Ukraine any more than the next person.
With that said, below is a chart of the S&P 500 since 1928.
