Economic Resilience In Times Of War

Economic Resilience In Times Of War

Share to Linkedin We all hope for a speedy – and peaceful – resolution of the Russia-Ukraine conflict, but the initial equity market response does not appear out of line with historical patterns. Market turbulence around military conflicts typically is short-lived. Historically, the S&P 500 Index experienced a 6% slide over a three-week period, on average, followed by a three-week recovery back to prior levels. Once lows were reached, equities rose 6. 5% over the next three months and 13% in the next year. The economic consequences of the Russian invasion for the U. S. are likely to be fairly contained. Consumers appear well positioned to handle higher energy costs, so consumption and economic growth should hold up better than they have historically. A European slowdown would create headwinds for U. S. growth, but the expansion is slowing from elevated levels. NEW YORK, NEW YORK - MARCH 08: People walk along Wall Street near the New York Stock Exchange (NYSE) ... [+] on March 08, 2022 in New York City. The Dow was up slightly in morning trading as the Russian invasion of Ukraine continues to unsettle global markets. (Photo by Spencer Platt/Getty Images) Recession risks remain low. During its