The biggest fear of 2022 is coming true. Vladimir Putin, President of Russia, has declared war against Ukraine today. This is not going to be any minor war rather, it has the capability to turn into World War III. Any kind of war doesn’t just lose human cost but also impacts the environment, universal peace, financial stability of each and every one. Presently, it is affecting the stock market of the world. For the past few weeks, the market is falling down unbearably like a nightmare for investors. The NIFTY fell by more than 2000 points today.
The world is separating apart but Twitter is being hilarious as always.
One of the problems investors face is that the stock markets highly depend on a lot of grounds including the political condition of the world. The reason is simple, as the price of crude oil changes, the price of the stock market also fluctuates. If the oil price is less then the companies will have to spend less on consumer goods that later help in maintaining the stock of the company. And who estimates the oil? The government.
“I have decided to proceed with a special military operation,” Putin said in a surprise statement on television shortly before 6 am. The war has started and the future of the stock market seems to get dark with every passing second. Thursday morning the global stock market fell 3% and joined a global stock sell-off. Russia has paused every trading in Moscow Stock Exchange after the war declaration. Russia, being one of the largest countries, this step is affecting every investor in the world.
WHAT SHOULD ONE DO AS AN INVESTOR?
The times are difficult for everyone. None of us expected that the human race would have to suffer another World War. The stock market is unpredictable at this point. Oil prices are already painful for consumers. Analysts are trying to make their predictions over the situation. One analyst, Edward L. Morse, says if energy prices continue to spike — largely because of speculation in financial markets — they are likely to decline quickly, based on fundamental supply and demand. Therefore, it is suggested to hold on as this could be the time that the market spikes up because, in the long term, Russia understands that these set of actions eventually can affect them.