Posted by lplresearch

Wednesday, January 25, 2022

With tensions running high in Eastern Europe, we’ve had many questions come in asking what could happen to stocks if Russia indeed did attack or invade Ukraine.

“As devastating as a major conflict could be between Russia and Ukraine, the truth is stocks likely will be able to withstand the geopolitical struggle,” explained LPL Financial Chief Market Strategist Ryan Detrick. “In fact, looking back at other major geopolitical events throughout history reveals stocks usually take them as a nonevent.”

As we share in the LPL Chart of the Day, the great majority of geopolitical events going back to World War II didn’t put much of a dent in stocks, with any losses made up quite quickly. JFK’s assassination is one of the best examples of this, as the next six months were one of the strongest and least volatile periods in stock market history, something no one could have ever expected that fateful day. We’d like to thank Sam Stovall of CFRA for sharing some of the data below.

Our thoughts go out to anyone potentially impacted by this event and we will continue to monitor the situation carefully, as near-term volatility on a major event like this could always be possible. But at this time, with the U.S. economy strong, earnings healthy, and corporate America in great shape, in our view, the stock market should be able to withstand this potential event.

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This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

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