After last weeks riots, many people compared the current chaos to that
of 1968: a global pandemic, ethnic conflict and political upheaval. That
year, Martin Luther King and Robert Kennedy were assassinated, the
presidential campaign between Nixon and Humphrey highly polarized US
political circle, protests broke out across the United States, and the
H3N2 flu, which turned into a global pandemic, killed nearly 100,000
Americans and millions around the world.To get more news about WikiFX, you can visit wikifx news official website.
At that time, the US stock market was quite similar to what it is now-the stock index has risen amid in turmoil. Between January and March 1968, the S&P 500 fell 9%, but the market has since rebounded by 24%, and up 7.6% for the year. Also, in the months after the assassination of President John F. Kennedy in 1963, the civil rights movement in Alabama in 1965, the War of Resistance in Washington, D.C., in 1967, and the Los Angeles riots in 1992, the volatility of US stocks remained unchanged. Moreover, the S & P 500 has recorded gains in these years, ranging from 4% to 20% after dividends.
These past cases remind us that the stock market and social and political events are not always linked. We may even say that the problem of social unrest has little long-term impact on the market. One reason is that the market is forward-looking, so it’s not just about the current situation. On the other hand. The Fed is propping up an economy hit hard by the epidemic with unprecedented intervention. Since the end of February, the Fed has poured nearly $3 trillion into financial markets, boosting stocks and overshadowing other market forces.
It is worth mentioning that, like 1968, this year is also an election year in the United States. Some industry insiders point out that if there was any reason why asset prices survived the terrible year in 1968, the election may be one of the important reasons.