Investing in times of Geopolitical turmoil

It seems that we can never go more than a few months without some type of crisis in some part of the world with worries about how it will affect the United States. Today’s headlines are full of concerns about how the US will react or respond to the alleged use of chemical weapons by the Syrian regime on its own people. It is natural for investors to look at these types of events and worry about what potential fallout may occur given various proposed responses by both the US and its allies. 

From an investing standpoint, the market has a tendency to have an immediate or short term effect, however those effects are not normally too long lasting. In fact, selling because of these “investment jitters” may result in missing a potentially future upswing. 

Consider the performance of the S&P 500 during the following periods:

Event:                                                                           1 month       6 month       1 year       3 years

1941 Attack on Pearl Harbor                                     +1.6%            -1.0%         +20.3%       +81.4%

1963 Assassination of President Kennedy              +2.6%            +11.4%      +18.9%       +20.9%

1990 Iraqi Invasion of Kuwait                                   -4.9%              +15.9%      +26.9%       +57.7%

1993 World Trade Center Attack                             +2.2%             +6.1%        +8.3%          +56.6%

2001 World Trade Center Attack*                           +0.6%             +7.7%        -11.2%        +13.8%

 *Market opened on Sept. 17, 2001.

Source: Ibbotson Associates. This is for illustrative purposes and is not indicative of any particular investment. Past performance is no guarantee of future results. Your own account may earn more or less than this example. You cannot invest directly in the S&P 500 Index and it is an unmanaged index.  The S&P 500 and S&P are registered trademarks of The McGraw-Hill Companies, Inc. The S&P 500 is an unmanaged market capitalization-weighted index of common stock. Stock values are more volatile than those of other securities. Returns are cumulative. Dollar cost averaging does not assure a profit or protect against a loss in declining markets. For the strategy to be effective, you must continue to purchase shares in both market ups and downs. 

To discuss how this subject or other financial subjects may relate to your own financial circumstance, please contact me at the contact information below:: 

Christopher N. Congema, CFP®

President, Investment Advisor

Core-X Wealth Management, LLC

900 Walt Whitman Road, Suite 208

Melville, NY 11747

631-923-2485 Phone

www.core-xwealth.com

chris@core-xwealth.com

This communication is from Core-X Wealth Management, LLC, a New York State Registered Investment Advisory firm. The information in this blog is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.