How do geopolitical events impact stock market investments?
Geopolitical events, such as wars, trade disputes, elections, and policy changes, can significantly impact stock markets by creating uncertainty and volatility.
When geopolitical tensions rise, investors may panic and sell stocks, leading to market declines.
Sectors like defense, commodities, and energy often perform well during such times, while industries like travel, exports, and consumer goods may suffer.
Long-term investors should focus on diversification and a strong investment strategy to navigate such uncertainties. While short-term market reactions can be sharp, markets tend to stabilize once the situation becomes clearer.
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