Things are heating up between Russia and Ukraine, and investors are starting to lose confidence.
Background: Long story short, the US believes Russia's President Vladimir Putin is on the brink of invading Ukraine. Putin says he's not...and while we don't know what's gonna happen, we do know it's making investors nervous.
What happened: At the time of writing, the S&P500 futures was down around 2.2%...the Dow Jones was down 1.3%...and the ASX closed 1.1% lower. Gold on the other hand? It was up 10%.
What else: Tensions in global politics is causing tension in global markets...and as investors' confidence slips, we could be headed for yet another sharemarket doomsday.
💡When the world hits some political turbulence, generally sharemarkets suffer a rapid sell-off.
💡It can be spooky...but it ain't always the end of the world. Since 1940, there have been 29 world events that caused the Dow Jones to hit a new low.
💡But in 23 of those cases, a year later the sharemarket had bounced back by an average of 24.7% (according to the AFR). So even if we do see a doomsday...it's like we'll survive.
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