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Stock market returns when a country goes at War

We all saw the sell-off yesterday when India announced that it carried out surgical strikes in Pakistan occupied Kashmir.

Result – markets tumbled down, mainly due to panic.

Expect the markets to remain volatile for a while now till the situation totally calms down. I guess this must have reflected on your investments yesterday.

Here are historical graphs from previous wars:

Sensex during Kargil war which was fought between May and July 1999: 


Dow Jones during World War 2:


Sensex both graphs sourced from Google finance. 

Dow Jones graph source – @Prashanth_Krish twitter

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