US Stock Market Ignores Civil Unrest


Historically social unrest issues have very little long-term impact on stock markets.

During prior periods of civil unrest and protests, markets similarly largely ignored tumultuous events.

After the assassination of Martin Luther King Jr. in Y 1968, markets dipped briefly on the day of his death, down 0.5% from 4-5 April, but rose roughly 3.5% by 11 April 1968.

The riots following the acquittal of police officers who had beaten motorist Rodney King in LA in Y 1992 did not disrupt markets, as the S&P 500 remained relatively flat from the beginning of riots on 29 April to 1 May, and rose 1.2% from 29 April through 1 May 1992.

In Y 2014, the riots in Ferguson, MO, triggered by the fatal shooting of Michael Brown by police, prompted markets to fall only 0.16% on the Monday through Tuesday following the start of protests on 9 August and saw markets gain 2.86% from 11 August through 21 August 2014.

Stock markets often disconnect from dire realities and headlines. Even in Y 1968, markets finished the year up over 7%.

1968 was the year that ‘shattered America’ and many tumultuous events and violence took place in that year. And despite that, the equity markets managed to perform solidly,” the head of research at Fundstrat Global Advisors, wrote. “1968 is a reminder that stocks and world events are not always connected.

I do not expect we will ever see a change in market’s outlook as the civil unrest is a time to time thing and money is an always thing.

Have a healthy weekend, Keep the Faith!