SINGAPORE: Staying invested in the stock market is likely the best strategy for investors amid volatility arising from the war in the Middle East, according to analysts.
“Military conflicts generally have a short-lived impact on markets,” said Ritesh Ganeriwal, head of investment advisory at Syfe, a digital investment platform.
On average, he said the S&P 500 stock index in the US reaches a bottom in about two weeks, and recovers in about a month.
The Bank of Singapore’s investment strategy team holds a similar view.
“History shows that geopolitical events typically do not negatively impact equity prices on a prolonged basis,” the team wrote in a report shortly after the war broke out.
Investors can add exposure to equities in the event of an overreaction to the conflict, the report added.
A few years from now, the war will likely not be the focus of investors, said Mr Ritesh.
