Analysts Say Nuclear War Will Be Bad for Markets

Chris Gaetano
Published Date:
Aug 11, 2017

Financial analysts, pondering the possibility of two nuclear-armed countries going to war with each other, have reached the stunning conclusion that such a thing would likely be bad for the markets, according to the Wall Street Journal. Citing several different analysts, a fight between the U.S. and North Korea would likely flatten yield curves, dampen risk appetites, impact share markets by about 20 percent, and upend traditional investment assumptions (for example, the old wisdom that people should buy yen in times of crisis). While such predictions may seem rather doom and gloom, the analysis is quite optimistic. Predicting negative impacts on sovereign debt yield curves, for example, requires that one believes the nations behind them will still exist, versus collapsing into a Mad Max-esque wasteland ruled by roving cannibal biker gangs. 

No word on what the current standoff's impact will be on canned food, bottled water and assault rifle futures. 

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