World War 3 & Impact on your portfolio

January 27, 2022 b investment banker , World War 3 & Impact on your portfolio 0 Comments

 hi everyone welcome to today's video so there is a lot of news that is going around the russia ukraine war that is going to take place how it will escalate into the next world war and how the stock market's all across the globe are going to vanish and all our portfolios are going to become very very soon so that is the narrative that is being played out so through this video i'm going to present an economic argument as to how different asset classes catch cold stocks how do they perform during war time wartime will look at some historic facts and accordingly you can balance your portfolio by making a more informed decision this will be a short but very important video so please stay tuned till the very end before i jump into and integrity of the video very quick shout out to a sponsor for today which is golden by an excellent born in investment platform in case you are looking to buy bonds you can go on the platform check it out it is india's biggest bond investment platform right now i have personally used it and i've loved the products you can definitely go check it out you can check the links in the description box as to how you can invest in bonds by using golden by now let us understand whether it makes sense to invest and gas invest in bonds invest in stock markets during a war time like situation so first and foremost let us understand that if ukraine and russia are going to a war and the entire world is going to get embroiled in a war when does it make sense for us to hold anything in cash of how much cash would be holding whenever a major war breaks out there are three things that happen that there is supply side shock so supply side shop simply means that all the supply chain gets disrupted that nations can not trade with each other movement of ships or cargo will stop similarly roadways will stop similarly air traffic will come down so all these things will happen and the supply side shop will contribute to inflation because if you are good start will be delivered in the economy second key thing in order to deal with the war like situation the government needs to print more money because they need to undertake a lot more expensive they will have to buy more and make logistical arrangements and bunch of other different different things due to which they will print more money this again leads to inflation finally there is bond action in fact so just to tell you very interesting story that during world war one and world war two government issued something called us war bonds this war bonds simply meant that your government will come to you and say that you know what we are going to fight a war two you want to support your nation in fighting this war response to purchasing the bond means that if i want to support my nation in terms of fighting the war will give my government certain amount of appeal let's say one thousand rupee and i will buy that want from the government now interestingly that war bond did not pay me and it was pretty much eat a break even price but i supported my government by buying that bond why because op nationalist pride so that is a very brief but interesting history about the war bonds but coming back to the topic that all these three actions contribute to inflation know what if inflation inflation is the general level of price rise in the economy