If the World War Occurs, how should investors do?

When talking about world wars, we think of the conflicts that occur between different countries. The past two world wars were caused by conflicts between powerful countries leading to world wars that affect widely spread around the world. This included the Cold War between the United States representing democratic political ideology and the former Soviet Union representing socialist political ideology.


At present, it is inevitable that the trade conflict between the United States and China is vying for economic and technological superpowers. Including competing in being a superpower to determine the direction and political relations between countries until they can be a leader in the world order. This means having a role to play in shaping the main order that the world holds and for the benefit of those in power to organize the world. Just like in the past that the United States did in the post-World War II era. has changed the world order from the European powers became the United States of America as the new superpower instead. To organize a new world, such as the ideology of governance in a democratic system free trade, use of the US dollar as the world's major currency.
 

This has caused many people to question whether China is now becoming more and more active on the world stage, causing the United States to doubt whether China will emerge as the next world leader. causing the United States to have trade and technology barriers from China. If the two countries have conflicts that lead to World War III that creates chaos around the world in terms of economic, social, and international relations. Including shortages in important resources such as food, medicine, as well as modern weapons that use technology to produce. For those who are investors, how should they adjust and invest in the middle of the world war? Let's find out together.

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Adjust investment portfolio
  

Should adjust the investment portfolio in safe assets. It is an investment in an asset that is expected to maintain its principal or increase its value during times of volatile economic conditions. And can reduce the risk in the event of entering an economic downturn, such as in investing in companies that benefit from war.


 An example of investing in Safe Haven

  • Government bonds at low risk Because the government guarantees the repayment of the principal plus interest.
  • Gold because it is a tangible asset. And the value of gold is not affected by interest rates. When the economy stagnates or enters a crisis the price of gold will rise due to increased demand. Because it is a tangible guarantee.
  • Savings even with low interest, but can help maintain the principal..
  • Defensive Stock, it is a stock that is resistant to all economic conditions. Most of them are stocks with relatively strong fundamentals. Low risk, such as electricity stocks, tap water shares, hospital stocks Stocks of consumer goods, stocks of expressways, stocks of electric trains, etc.


Examples of investments benefiting from the war

  • Companies benefited from the war, such as weapons companies, aircraft companies, etc.
  • Companies that produce four-factor products such as food, water, medicines, etc.
  • Oil companies Because oil are considered a commodity and prices tend to rise during the war.


Investors need to study regularly to keep up with the situation of the world. Both economic conditions and major crises to invest at the right time. Including the need to diversify investments to reduce risks that may arise from the volatility of the economy. And should adjust the investment portfolio according to the situation because each asset has different risks and returns in different times and situations. Interested in investing to diversify the risk, see details at SCB Easy Invest.  http://www.scbs.com/easyinvest


References

http://www.investerest.co/investment/wwiii/

https://www.longtunman.com/20582

http://www.digitalschool.club/digitalschool/social2_1_1/m6_2/content/lesson2/lesson2_1.php

https://www.bot.or.th/Thai/ResearchAndPublications/articles/Pages/Article_29Oct2020.aspx