Geopolitical Events and the Stock Market

Geopolitical Events and the Stock Market

The chart below outlines how the stock market has reacted to global geopolitical events.

It’s important to not downplay these tragic events but as you’ll see, in some cases the stock market was barely effected.

Global Event Date Drawdown Days to Bottom Days to Recovery
US Pulls out of Afghanistan 8/30/2021 -0.10% 1 3
Iranian General Killed in Airstrike 1/3/2020 -0.70% 1 5
Saudi Aramco Drone Strike 9/14/2019 -4% 19 41
North Korea Missile Crisis 7/28/2017 -1.50% 14 36
Bombing of Syria 4/27/2017 -1.20% 7 18
Boston Marathon Bombing 4/15/2013 -3% 4 15
London Subway Bombing 7/5/2005 0% 1 1
Madrid Bombing 3/11/2004 -2.90% 14 20
US Terrorist Attacks 9/11/2001 -11.60% 11 31
Iraq’s Invasion of Kuwait (Persian Gulf War) 8/2/1990 -16.90% 71 189
Reagan Shooting 3/30/1981 -0.30% 1 2
Yom Kippur War 10/6/1973 -0.60% 5 6
Munich Olympics 9/5/1972 -4.30% 42 57
Tet Offensive 1/30/1968 -6% 36 65
Six-Day War 6/5/1967 -1.50% 1 2
Gulf of Tonkin Incident (Vietnam War) 8/2/1964 -2.20% 25 41
Kennedy Assassination 11/22/1963 -2.80% 1 1
Cuban Missile Crisis 10/16/1962 -6.60% 8 18
Suez Crisis 10/29/1956 -1.50% 3 4
Hungarian Uprising 10/23/1956 -0.80% 3 4
North Korea Invades South Korea 6/25/1950 -12.90% 23 82
Pearl Harbor Attack (WWII) 12/7/1941 -19.80% 143 307
Average -4.60% 20 43