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Syria: Russell 3000(R) Index Provides Historical Perspective on U.S. Market Amid Global Uncertainty

Aug 30 2013 12:00AM

Marketwire

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SEATTLE, WA -- (Marketwired) -- 08/30/13 -- With the situation in Syria creating market uncertainty about a possible U.S. response, some market participants may be concluding that military tension is bad for markets. Looking at previous U.S. military conflicts in the Middle East, the Russell 3000 Index has shown at least a +10% outperformance for three months following U.S. engagement compared to the three months preceding the engagement.

"We certainly should expect volatility as investors react to the troubling news of the day, but historically the market impact from anticipation of military intervention in situations like this has usually been worse than the market impact from the actual intervention itself," said Erik Ristuben, Chief Investment Strategist at Russell Investments.


Operation Desert Storm Russell 3000 Returns------------------------------------------------------------- 10/17/1990 - 1/17/1991 11.48%------------------------------------------------------------- (ENGAGEMENT) 1/17/1991 3.51%------------------------------------------------------------- 1/17/1991 - 4/17/1991 21.73%------------------------------------------------------------- War in Afghanistan Russell 3000 Returns------------------------------------------------------------- 7/9/2001 - 10/8/2001 -11.72%------------------------------------------------------------- (ENGAGEMENT) 10/8/2001 -0.79%------------------------------------------------------------- 10/8/2001 - 1/8/2002 10.93%------------------------------------------------------------- War in Iraq Russell 3000 Returns------------------------------------------------------------- 12/20/2002 - 3/20/2003 -1.82%------------------------------------------------------------- (ENGAGEMENT) 3/20/2003 0.29%------------------------------------------------------------- 3/20/2003 - 6/20/2003 16.27%-------------------------------------------------------------




"Make no mistake, Syria is a human tragedy. Although we can't predict the outcome with certainty, our view continues to be that U.S. and global economic activity will accelerate in the second half of the year, and Russell believes the current reported economic data is in line with that expectation. Therefore, we do believe that equities will continue to perform strongly over the next year and that the recent short-term volatility posed by Syria may actually provide investors an opportunity to 'buy on the dips,'" noted Ristuben.

Source: Russell Investments.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Past performance does not guarantee future performance. This material is not an offer, solicitation or recommendation to purchase any security.

Opinions expressed by Mr. Ristuben reflect market performance and observations as of August 29, 2013 and are subject to change at any time based on market or other conditions without notice.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.



Source: Marketwire


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