Tuesday, March 04, 2014

Market's Reaction To Geopolitical Events

Seems logical to say today after the sharp snap-back in global equity markets; however, past crisis have generally provided investors with good buying opportunities versus selling. As we noted in our post over the weekend, the Ukraine crisis was/is likely to not have a long term negative impact on global market returns. Last September Sam Stovall of S&P Capital IQ issued a report highlighting prior geopolitical crisis' impact on the markets and the subsequent recovery period. The average days need to recover from the loss is 14 days. The below table highlights the "shock" events and impact on the market.

From The Blog of HORAN Capital Advisors


Shocks & Stocks
S&P Capital IQ
By: Sam Stovall, Chief Equity Strategist
September 3, 2013

h/t: Wall Street Journal

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