The Business Times
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COMMENTARY

Stock markets are less afraid of war than we imagine

A look at the past shows that most regional conflicts have not been bear-market catalysts

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    • A Ukrainian soldier on the front line, as the conflict in Eastern Europe continues. The writer says that stocks hate uncertainty from mounting tensions more than regional conflict itself.
    • A Ukrainian soldier on the front line, as the conflict in Eastern Europe continues. The writer says that stocks hate uncertainty from mounting tensions more than regional conflict itself. PHOTO: REUTERS

    Ken Fisher

    Published Mon, Jan 20, 2025 · 05:00 AM

    WHILE Hizbollah struck a tenuous truce with Israel, fighting continued in Gaza and Yemen, prolonging fears of Iranian intervention. Russia and Ukraine carry on hammering one another, now with long-range ballistic missiles.

    Some pundits still fret that conflict will spread to North Atlantic Treaty Organization nations, citing the cutting of the data and power lines connecting Baltic allies. Many think that this threatens stocks, seeing sporadic Straits Times Index (STI) volatility on war news as evidence.

    No. Markets have already proved that these regional conflicts are not threats – a lesson worth heeding. Let me explain.

    Financial marketsMarket volatilityRussia-Ukraine war

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