What affect would a war with North Korea have on the stock market?
A war with North Korea would lead to a number of outcomes…
1. Rising Value Of Gold
Stock market investors shun uncertainty. Gold has been able to store value over long periods of time for almost 5,000 years.
This means that when things get uncertain, investors move into gold.
Since the beginning of this year, the value of gold has risen due to Brexit, Trump’s election and other geo-political uncertainty
This trend would continue with a war with North Korea. As graph from iShares poster shows.
You can invest in gold by buying gold bullion, or investing in gold ETFs
2. Defence Stocks Would Surge
The rising value of defence stocks would almost certainly take place as well.
You do not have to be Warren Buffett to realise that defence stocks rise when war comes knocking.
Personally, I would not invest in defence stocks (morality etc), but nothing to stop you, the profit-hungry investor, from getting your hands dirty!
The SPDR aerospace and defence ETF has dramatically increased in price. Since 2012. Since 2016, it has also risen exponentially.
Defense stocks have already begun to rise on the threat of war. Expect them to soar if war is declared: