View

The Ukraine War May Have Triggered a Lasting Bear Market

Investors might need to expect months or even years of challenges to geopolitical stability and market sentiment

Phillip Toews is the CEO of Toews Asset Management.

If historical precedent offers any guidance, the currently high valuations of the S&P 500, which remain elevated even after recent declines, mean that a prolonged bear market is likely in the near future. Furthermore, the Russian invasion of Ukraine may guarantee it. A comparison between the Iraqi invasion of Kuwait 32 years ago and the current conflict in Eastern Europe may help illustrate why.

WSJ Logo