AFGAN COLLAPSE - IMPACT ON US STOCK MARKET?
20 years - that is how the long US has been in Afghanistan, and the Taliban was in the back shadows. Now, after 20 years Taliban is back in power, and mainly they want to implement Sharia law for Afghan people.
But how does it impact the US stock market? Let us dig in.
SOME IMPORTANT EVENTS
Taliban captured Kabul, the capital, and the president fled the country to a neighboring country.
There are lots of concerns in the US over this development.
The US is quite taken by surprise by the speed with which the Taliban captured Kabul. And the US sent an emergency 5000 troops to evacuate their citizens from Afghanistan.
Also, there was an additional approval of 1000 troops to be sent to Kabul, especially to secure the airport.
Now, this has some impact on some stocks, which will check in some time.
IMPACT ON STOCKS
Generally, military conflicts do not directly impact the stock market, but there can be many indirect implications to the stock market, as we have seen with $SPX500 and $NSDQ100 .
Markets have been generally optimistic till this point, but it may need further analysis.
The market is already on the verge because of the delta variant wreaking havoc on many industries and further cut down expected.
Also, military aggressions will result in some Military stocks gaining the boost. Some stocks like $NOC (Northrop Grumman Corp) , $LMT (Lockheed Martin Corporation) , and $BA (Boeing) groups have gained with this implementation.
SUMMARY
Consensus is to have a correction because of this, but the impact of war is not very clear on the stock market, and it may behave weirdly.
So be cautious of any investments, as we can definitely imagine some volatility in the market.
That is all I wanted to share about the Afghan situation and stock markets.
You can stop reading here. But some boring facts about me below -
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I have been investing in markets for more than 8 years, on Etoro for more than 6 years, and on Popular Investor for more than 1.5 years. I have made more than 25% PROFITS for my COPIERS in the last 12 months, even in a down market.
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