History Shows S&P 500 Dips from US War Events Are Temporary, Followed by Bull Markets
Despite the immediate fear and market volatility often triggered by major U.S.-involved conflicts, historical analysis suggests that the S&P 500's dips following these events have consistently been short-lived, preceding multi-year bull markets.
A recent post by Bitcoinsensus mapped various significant U.S. war events against the S&P 500’s performance over decades. The analysis includes conflicts ranging from Pearl Harbor, the Korean War, the Vietnam War, the Gulf War, 9/11, the Iraq War, and even the current Israel-Iran tensions. In each instance, these events triggered a “temporary dip” in the S&P 500.
However, the crucial takeaway from this historical review is that “history shows those drops were short-lived and followed by multi-year bull markets.”
The accompanying chart visually illustrates these points, marking the war events with red indicators that correspond to brief downturns before the broader upward trend of the S&P 500 resumed and accelerated.
Bitcoinsensus summarized this observation with a powerful statement: “Fear is temporary. The trend is long-term bullish.” This perspective encourages investors to look beyond immediate geopolitical shocks and consider the enduring upward trajectory of the market over extended periods.
For those interested in navigating market turbulence, Bitcoinsensus also promoted their “#Legends trading community” as a resource for learning how to hedge during challenging times and take advantage of market movements, whether up or down. This suggests that while the long-term trend may be bullish, short-term strategies can still be employed during periods of volatility.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
