The ongoing invasion in Ukraine has presented new challenges to the stock market that is already unstable since the beginning of the year. According to the S&P 500 stock market index, there has been a straight drop in one day since May 2020 of stocks, in the middle of the war and the piling sanctions imposed by the United States and its allies.
The most obvious consequence of the war is, of course, the loss of lives involved. With over a hundred civilians perished, along with children and a continued exodus of million refugees fleeing the country, this war has an uncertain end.
While the human costs of the war cannot be ignored, in this article we will elaborate the implications of the war in the stock market and in online casinos.
Why is the war creating uncertainty in the economy?
Following the invasion of Ukraine in February, there was a worldwide boycott of Russian companies and slot products. Several major companies pulled out their investments in Russia or halted their plan to invest in Russian firms.
According to Jeremy Schneider, a finance expert, he said that several investors pulled out their investments in response to the ongoing crisis. This happens because of their fear that it will create volatility in the market.
How is the war upsetting the stock market?
Recently, there are several factors that are shaking up the global stock market. This includes the growing interest rates, the rising inflation, the current global pandemic, and today, the ongoing war crisis in Ukraine.
Schneider warned that people shouldn’t be reactive to what is going in the news when it comes to investing. Those who are planning to sell their investments because of the crisis should expect a major failure in the market. It is human nature to react in panic when there is a crisis but that is the reason why there is a 30% drop in the stock market in March 2020 because of the pandemic.
Is the market going to collapse?
Schneider admitted that the answer to the question “Is the stock market going to crash?’. Is he doesn’t know. However, he says that based on history in which wars do not necessarily directly affect the market, it is not likely going to happen.
As proof to this, Schneider further explained that in the last six wars in the U.S.; there has been a significant rise in the stock market after the war’s breakout. If the whole stock market collapsed, that would mean there is no company like casino truc tuyen in the nation that would make a profit. If that happens then it is a very terrible situation, however, it is highly unlikely to happen.
What should investors do?
The sanctions imposed by the United States and some European nations to Russia may have inspired many investors to pull out their investments. However, Schneider said that investors should think twice before they withdraw their investments.
Instead of reacting to the situation, he said that investors should stay on course and plan a strategy to work their way around the situation. He said that now is not the time to give up, they should keep their investments for years, and don’t sell them until they retire. He also added that it is much wiser to have an emergency fund to keep their money secure.
The bottom line
In the end, despite the volatility of the global stock market in the present, investors should stick to their financial investments, pay their liabilities, establish their savings, and continue to invest. The most appropriate action right now is to keep what you have started and remain calm.