BONUS: Stocks, Bonds, and War
The Rational Reminder Podcast
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The Russian Stock Market, What a Deal?
Investors in stock markets of countries involved in an international crisis see their markets drop about two %. On average, the losses are only partially recovered when the crisis ends. The reaction from stock prices is stronger when a crisis involves basic values like a territorial threat or a threat to existence. reactions are also stronger when a super power is involved and when the conflict starts with violence.
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