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To be completely fair, the risk of nuclear war shouldn't be priced into the US equity markets. If a catastrophic nuclear war happens, the only way selling stock
by ThrustVectoring 9y ago
To be completely fair, the risk of nuclear war shouldn't be priced into the US equity markets. If a catastrophic nuclear war happens, the only way selling stocks can help you is by excessive short-term spending on frivolous luxuries. The risk/reward profile simply doesn't make sense for even a significant risk to substantially alter investor behavior.
- Boothroid 9y agoAre you assuming the market is rational?
- ThrustVectoring 9y agoNope. The market is adaptive, though. Every time someone sells on a piece of news that "should" be ignored, it trains the rest of the market to "buy the dip".