WAR and conflicts – whether local, regional or global – always arouse tension and anxiety in us as investors. First, there was the Ukraine war; then geopolitical tensions between the US and China; Afghanistan; and now the Israel-Palestinian conflict. Markets have weathered more than their fair share of geopolitical events in the past few years. Investors have become anxious, and volatility has surged alongside the rise in uncertainty.
The science of wealth is about using empirical evidence and data to learn and understand how financial markets work. An important part of that is to look to the history of financial markets to guide and teach us about how markets react under different circumstances....