Please find below the 5 charts that tell interesting stories on Markets and Investing.

1) How is Israel-Palestine War going to affect the Stock Market?

Chart shows the major geopolitical events since WWII and how stocks did after the events.

Median return after 1 month of the event is -1% and median return after 12 months of the event is +7.4% for US S&P 500.

In 63% of the events, the return has been positive after 12 months. 

Geopolitical wars are short term noises which create panic in the market but in the long term they don't impact the market much. 

2) Investing in Equity during War Times - India Market:

The impact of the war on equity markets have been reducing since 2014.

In all the occasions, equity has given a return of more than 20% after 1 year of the war.

Any correction in market due to a war is a fantastic opportunity for investment and great returns. 

3) Asset Class Wise Return Since 2011:

1) Bitcoin has been the top performer in 10 years out of 13 years.
2) US Nasdaq is the 2nd best performing investment.
3) Gold, Commodities and Emerging Market Equities have all struggled.

4) Equity will continue to struggle till this chart is reversed:

US Treasury papers are yielding more than the US Stocks in 2023.

This has happened for the 1st time since 2001.

Why will an investor invest in equity if he/she is getting better yield of 6% in USD in cash?

US Fed needs to cut rates for equity rally and we expect this to happen after 1-3 quarters. During this period, markets are expected to be volatile. 

5) Is Gold a Good Investment?

Gold didn't give any return for 31 years between 1980 to 2011.

Gold is a commodity of very long cycles.

Can you handle the bear run period of 31 years?

If past is any reference of future then one needs to be careful before investing in Gold.

Investor can make return in Gold only if they are able to invest at the start of the bull run of Gold. And this is difficult to predict. 

- Returns are in GBP.

Read more similar articles in our blog - https://alphacapital.in/blog/

Best Regards

Dr. Mukesh Jindal CFA, CFP, CAIA, Ph.D.

Alpha Research