In both cases, a military conflict triggered the crisis.
(Photo: imago images/Everett Collection)
Frankfurt. The 1973 oil crisis triggered the longest stock market downturn since World War II. At the beginning of October 1973, Egypt, Syria and other Arab countries attacked the state of Israel. At the end of October, a wave of sell-offs began on the stock exchanges, which lasted a total of 27 trading days for the US stock index S&P 500.
According to an analysis by Deutsche Bank Research, it was only after 1,475 trading days that the index returned to its pre-war level – that’s a good four years. Two questions arise for investors. Firstly, is the situation in the Ukraine war comparable to the 1973 Middle East war? And secondly: What lessons can investors derive from this for their strategy and portfolio?
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