Wartime Investing

Wartime Investing

Wartime investing adds to the fear, uncertainty and doubt FUD of sheltering capital during the most stressful times. 

While the Trump administration appears genuinely trying to defuse the Ukraine war, Europe’s worst war since WW2, it could be a case of hope for the best but also make plans for the worst case, and for investors, that means wartime investing. 

Sending soldiers on a peacekeeping mission, where tensions are high, on a half-baked peace plan could worsen conflicts. 

The United Nations (UN) has had many peacekeeping mission failures, including the Rwandan genocide, the Srebrenica massacre, and the Darfur conflict. 

Leaders of the Great Powers, Trump and Putin, could have all the goodwill to want to end the fighting and bloodshed and make a peace deal in Ukraine. But what happens on the ground could be something very different. Soldiers are warriors trained for combat, defeating the enemy with often lethal force. 

Frankly, soldiers are trained and equipped to capture or kill the enemy in wartime and not make peace.   

So the moment a peacekeeping contingent of soldiers comes under fire, which previously happened in these peacekeeping operations, soldiers have few options to return fire, neutralise the threat or remain passive and potentially die under fire.

An even worse-case scenario could unfold if these peacekeeping soldiers are ordered not to return fire and all perish under fire.

These proposed peacekeepers will probably end up in a firefight. 

When draped coffins of British and other NATO service personnel return home, emotions will run high, dragging the American reluctantly directly into the conflict. 

Wartime investing as peacekeeping soldiers is the war hawks’ devilish gambit to cox American direct involvement in WW3

Hoping for peace but planning for a wider conflict might be wise.

It is a mystery to me why Europe didn’t do everything diplomatically possible to address Russia’s concerns and prevent the Russian-Ukraine invasion. WW1 and WW2, the devastation of Europe’s continent is not ancient history.  

Wartime investing buoyant demand for safe havens       

Gold traditionally rises in value during wars as a safe-haven asset. Investors often turn to gold to hedge against market uncertainty and currency devaluation. However, the rise of cryptocurrencies could eat gold’s share as a haven, particularly during wartime. The portability of bellwether crypto BTC across borders with metal detectors and warzones is unmatched by any other asset.      

Oil prices also tend to spike in wartime due to supply disruptions.

Companies benefited from the war, including weapons companies, aircraft companies, etc. Companies that produce four-factor products, food, water, medicines and oil, are least affected by war and currency debasement. 

Traditional Wartime Investing includes the following assets

• Precious Metals: Gold: Often considered a safe haven, gold retains its value and can easily be liquidated. 
• Government Bonds US Treasury Bonds, particularly in the war in Europe. These are regarded as one of the safest investments, offering a reliable return despite lower yields.
• Defence Stocks.
• Real Estate an ocean away from the conflict