Hello everybody!
At the moment, we all witness the political conflict in Eastern Europe and how the world reacts to it. But, I created this sub not to discuss politics. Actually, I wonder how it will affect the stock market in the future?
Basically, after the Russian invasion of Ukraine started, the whole world implemented economic sanctions against Russia. It's a fact. Another important moment that some giant international corporations, such as Apple, Microsoft, and this list I can continue for too long, decided to close their stores and online stores and fire all employees. Even companies, such as McDonald's and Coca-Cola, known globally, have decided to leave the Russian market. Many of them say it's not permanent. But, who knows?
On the one hand, it's some way of punishing Russians by leaving them without some favorite goods. They are left without luxury goods and some basic necessities provided by the companies such as Procter and Gamble. Well, I hope they received the message that they have to do something.
But, on the other hand, those companies are also losing their customers. Indeed, Russia is huge. It's not something like those companies looking at North Korea, but who cares? Shouldn't those actions affect the stock market too? As I understand it, those companies lose a significant profit share. So, their stock prices should go down.
I expected to catch this moment with low stock prices and start investing in stocks. But, I was really shocked when I saw that stock prices, for some reason, are going up. Not all of them, but Apple's shares definitely went up. I was trying to find some logic in this, but I just can't catch on to how it's even possible. I've tried to find some explanation on sources, such as https://investorjunkie.com/, where everything is explained in pretty much simpler terms. Still, I don't get it. Maybe you can help me out and explain what's going on?
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