Times of crisis are not for profiteering on the suffering of others and our thoughts go out to the people of Ukraine.
Clients ask us for our views during times like this, however, so we thought it would be good to offer a few investment thoughts.
Geopolitical events always lead to stock market weakness. Along the lines of what we have written about other crisis events, though, The Normal is that drops tend to be short-term in nature.
To help illustrate this point, below is an overview of major military events and subsequent market movements. As it shows, markets tend to look forward and move up 75% of the time, which is actually slightly higher than the long-term average (click here for an illustration of calendar year returns of the S&P 500).
Source: FactSet and Truist IAG
We do not know how long this current crisis will last and our prayers are with all who are suffering.
From an investment point of view, however, we continue to suggest what we have written before.
Events that are out of our control often bring market storms, but history consistently teaches us that true long-term investors have been consistently rewarded for Keeping A Steady Hand On The Tiller.
Keep A Steady Hand on the Tiller