THE UKRAINE INVASION
Rippling Volatility Across Several Markets
Crises are often seen to be full of threats with respect to amateur traders,
yet full of abundant opportunities with respect to the professionals. Large
economic and geopolitical changes are usually accompanied with massive long
and short trading volumes, where significant amounts of wealth transfers are
recorded. The Ukraine invasion spiked rippling volatility across several
markets, where the safe haven,
Gold , the
leading U.S index, Dow Jones, and the main source for war,
Oil , are seen to
be attracting the greater amount of investor participation.
| DOW | PRICE RANGE |
| 2022: RUSSIAN-UKRAINE WAR | -12.7% |
| 2020: COVID-19 | -39% |
| 2008: FINANCIAL CRISIS | -54% |
| MAXIMUM DRAWDOWN | -39% |
| PERCENTAGE TO REACH MAXIMUM DRAWDOWN | -26.3% |
As oil is a finite resource, its price can see massive fluctuations due
to supply and demand changes. When geopolitical tensions rise, this
volatility makes it extremely popular among traders, with the aim of
making large profits, to increase their equities in a relatively shorter
time span.turbulent conditions.
*Trading Forex is Risky
With U.S
rate hike fears, U.S sanctions on Russia, along with drastic surges in
oil prices, the Dow lost nearly 1840 points from 34143 to 32305 so far.
The
Dow Jones’ fall of nearly 3,000 points on March 2020 ,16, was
the largest single-day drop in U.S. stock market history to date.
Closing 21,200. In terms of percentage, it was the third-worst drop in
U.S. history.
The
stock market crash of 2008 occurred on September 2008 ,29. The Dow
Jones Industrial Average fell by 777.68 points in intraday trading.
Until the stock market crash of March 2020 at the start of the
COVID19- pandemic, it was the largest point drop in history
As the Dow reflects the backbone of the U.S economy, closely tracking
its leading companies, the magnitude of its drawdowns is similar to
that during its rebounds. The index is highly sensitive to economic
disturbances; yet, once the fog is clear, the large bull volumes get
the index back on its primary bullish trend.
A Few Steps To Enroll
