Displaying items by tag: war

(New York)

The chances of a war breaking out with Iran are not minute. They are probably not high, but significant enough that it is worth having a plan. It may be unseemly to think about asset prices during armed conflict, but just because a war has broken out does mean one’s duty to protect clients ends. The key thing to remember is not to panic. Selling into a panic is a bad idea, and historically speaking, the market tends to be higher six months later anyway. Generally speaking, that is the trend in past armed conflicts. There is an initial fall in stocks, only to be followed by a subsequent rise over the next six months to above the starting level.

FINSUM: We do not think a war with Iran will happen. This seems more like simple political wrangling.

(Stockholm)

For the first time in half a century, Sweden is seriously prepping its country for the possibility of war. Growing national anxiety over the threat of Russia has led the government to send out 4.7m information pamphlets to all households informing them of what to do in the event of war. “All of society needs to be prepared for conflict, not just the military. We haven’t been using words such as total defence or high alert for 25-30 years or more. So the knowledge among citizens is very low”, says the government. The country is also considering whether it should join NATO.

FINSUM: The Baltics and Scandinavia are particularly exposed to possible Russian military aggression, so it makes sense they are nervous.