Could a war with Iran affect stock markets?
Stocks will go down if, and when, there is a long war right? At least that is what many people worry about, given the situation with Iran and the US right now. That is what many believe, but is it true?
Let’ s look at a long- period of time — over 90–100 years — and see if wars have had an impact on the natural trend markets were having before the outbreak of wars.
What we can see is little or no long-term correlation between markets and wars.
In other words, sometimes markets fall, and sometimes they rise, during wars, and often the rises or falls has more to do with other factors.
Some recent examples include:
- During the few years after the Iraq War, markets increased considerably
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