What happens to the stock market during a time of war?

The recent flare-up in the Middle East has investors asking questions about what might happen to their portfolios if a war breaks out. While every scenario is different and the variables change, there are some important things to understand about how wars have historically affected the Dow Jones Industrial Average.

Ben Carlson is the Director of Institutional Asset Management at Ritholtz Wealth Management. This past week, he took a look at how US stocks have acted during WWI, WWII, the Korean War, Vietnam, the Gulf War, etc. Ben shares his findings in a new article at Fortune Magazine and in this video with Josh Brown.

Read Ben's full article here:

Be sure to subscribe to our channel so you never miss an update:

Beginning Investors, check out Liftoff:

Follow us on Twitter:

Follow us on Facebook:

Talk with us about your portfolio or financial plan here:

Obviously nothing on this channel should be considered as personalized financial advice just for you or a solicitation to buy or sell any securities. Please see this 3,000 word terms & conditions disclaimer:

[luizcarvalho]

I guess this video got more importance right now

[nicholasnahat]

Consider your 'home-country' bias here. If your country wins, things can be fine. But, war is terrible if you're on the other side, e.g. the stock markets of Japan and Germany during WWII. The Russian stock market closed for generations after WWI.

[ericstollery]

The elephant in the room that you guys forgot to mention is that war is big business for US defense contractors. Every missile that gets fired off is like $1 million (of taxpayer money) in the pocket of Raytheon or BAE Systems. I feel like the war economy angle can do a lot to explain why the stock market gains during conflicts.

[richramsey]

I like these "perspective" pieces. They are much better than the pundits on TV.

[Johnny-sehk]

The war definitely can have a negative or positive impact on stocks, oil/commodities, bonds, and the housing market, my concern is to be on a safe side. I'd appreciate useful tips on best possible ways or areas to invest now for both short and long term growth.

[Abhisheknanavare]

What happens in defence stocks during such crisis? because WW3 may start anytime now.

[MrPetchiram]

Hi.. I have a general question.. If third world war broke out in the upcoming years, Will stock market continue to run during third world war time as well ? Do you have any idea about the stock market whether it will continue to function at the third world war time or not ? Pls share

[E-D-U]

In UK was different...
In US stock market was different because no one could reach here but this time will be different I think

[noneofya]

Watching this on October, 2023 in a time of Mideast conflict 😮still relevant

[Yaw_Jr]

Great content with relevance today.

Hmmm - Ben must be related to John Terry (Chelsea FC legend! ).

[seekn]

I wonder what happens to oil stocks during war time. I think although supply will be high but no one is actually gonna buy any intangible assets?

[andream.]

To say that the market went up by 80% the year of the war, as if war were actually good for the economy, means forgetting that people don't take percentages to the bank, but money! If your stocks or house were worth $100.000 before the war and after the war they were worth $5000 and after the war, their value increased by 80% in a year, your stock or house would still be worth $9000...

[robertsmith]

All my portfolio is in Tesla stock. Will this effect Tesla?

[bigroo]

What about a civil war within America?

[AdrianDucao]

i mean some of us could shift to war profiteering during war times, manufacturing and gun running.

[raheemkumar]

A war will tumble the market and all indexes will assume the bearish trend. It is sad. My adviser proferred that I liquidated some shares in my portfolio that aren't doing well enough and buy more digital currency with, this was before the new year. Thanks to her I have over $350, 000 in my portfolio. It was just above $300, 000 at the beginning of the year.

[tommyaudio]

the bitcoin joke hitting a nerve as Russia starts bombing Ukraine tonight and it crashed immediately

[arzy]

How can Ben have better clothes than Batnick who lives in NYC?

[mos]

This will be useful for China Taiwan in August

[Zinnie]

Explain war and the stock market within context of Russia and Ukraine tensions now and NATO countries involvement. 🤔