The war has happened and the market is surprisingly going up. I’m trying to understand what this typically signals and how investors should think about positioning now. Is this a normal post-event reaction, liquidity-driven move, or something more structural?
The war happened and well the stock market is going up. now what?
byu/iamburhanmirza ininvesting
Posted by iamburhanmirza
16 Comments
Stock market is behaving like war never happened or war is over or strait is now open…. Mind boggling
You need to step back and look at what’s driving the market. Tech and AI, which isn’t nearly as impacted by whatever is going on in the Middle East.
It’s really not hard to understand. Look at earnings…. As long as companies continue to grow and increase margins stocks will go up. It was an unreal quarter
Earnings are driving this market and always will. If companies are still making money, the market goes up.
lol you still think war is bad for stocks? War isn’t bad for stocks, have never been bad for stocks, unless you’re talking about short term knee jerk reactions, because far away wars have almost no effect on company earnings.
Do you understand how the US got out of the Great Depression? Partially a reason was because it went into WWII and the economy surged on the back of war manufacturing boom.
Specific to the war. Market is reacting to news outlet being more optimistic the war will end. So it’s pricing off that, but also earnings and guidance have been very strong especially around AI so market is ripping with those 2 factors in play.
Get ready for the next war pump, rinse and repeat?
The stock market is forward looking to the war ending. So basically priced in the end of the war already. If the war starts up again, there’ll be a pretty good hit I think. Then rinse and repeat of the last few months.
People are desensitized.
the stock market is just capitalist masturbation, it has very little to do with reality and only really shows the emotions of the wealthy at any given moment. Don’t expect it to go down just because things get bad. Every American could be ground up into paste and the line would still go up.
Its normal
The stock market will always be unreasonable. That’s how it’s always been.
I don’t think you understand how the economy and stock market works.
Yes, oil has its part to play in the stock market and cost of goods and services.
But the oil flowing thru the strait and oil in general don’t impact the *totality* of the stock markets
Sounds like you werent paying attention. It was barely a ‘war’ if you can even call it that. You had your month of pull back. Now its bouncing hard. Oil prices going down, ceasefire hopes, tech keeps spending and life goes on….for now
AI and Tech are over valuing the Markets globally. Inevitably when the bubble bursts the market will reset.
We also haven’t seen the full market impacts of the war yet.
Earnings growth is the biggest driver of stock prices. So long as S&P 500 forward earnings keep rising at double digits levels, stocks will go up long term. Look for the company’s driving that growth and pick good entry points.