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Geopolitical Events and Their Correction With Stock Market

The stock marke is experiencing some ups an downs,  not only becuse the Fed's incoming rate hikes, high PE ration of SP500 index, but also the geopolitical tension in the eastern Euriope.

I put together a list of 

No Date Event
1 1914/7/28World War One
2 1939World War Two
3 1941/12/7 Attack on Pearl Harbor
4 1950/6/25 Korean War
5 1955/11/1 Vietnam War
6 1962, October The Cuban Missile Crisis
7 2001/9/11 The 911 terrorist attacks
8 2002, October Iraq War
9 2014/2/23 Annexation of Crimea by the Russia
10 2018, January US China Tradfe War
11 2020, March Covid-19 Outbreak
12 2022, January North Korea 7 Missile Tests

Dow Jones

Dow Jones was closed during World War One.

Conclusion

  • The biggest financial drop was before world War Two, which might have been the cause of the war, rather being the result of it.
  • The geopolitical events alone would not be the sole cuase of market downturn.
  • The US-China trade caused the market to flutuate from January in 2018 to December in 2019, which was almost 2 year in length. This geopolitiacal event was trade centric and might have strong impact on the stock market.
  • Covid-19 outbreak in the early 2020 caused the dow to drop from 29551.42 on 2020/2/12 to 18591.93 on 2020/3/23 which was a 37.09 loss and it took about 1 month and a half to bottom.
  • Covid-19 has direct relation to market activity then may be defined as a cause to the market downturn.
  • How much would the current Russia-Ukrain Crisis impact the stock market is still be to watched.

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