Historically, little enduring impact of geopolitical crises

Sources: © 2022 – Morningstar Direct, All Rights Reserved1, and Wells Fargo Investment Institute, as of March 31, 2022. For illustrative purposes only. Analysis uses total return for the S&P 500 Index. The S&P 500 Index is a market capitalization-weighted index composed of 500 stocks generally considered representative of the U.S. stock market. Index returns do not represent investment performance or the results of actual trading. Index returns represent general market results and do not reflect deduction for fees, expenses or taxes applicable to an actual investment. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. There is no certainty that U.S. markets will continue to show resilience despite crisis events. Investing in stocks involves risk and their returns and risk levels can vary depending on prevailing market and economic conditions. There is no guarantee equity markets will perform similarly during other periods of uncertainty. All investing involves risk including the possible loss of principal.

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Key Takeaways

  • Crisis events have tended to have a short-term negative impact on markets.
  • After most of these geopolitical crises, the S&P 500 posted positive returns 3 months, 6 months, and 12 months after.