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Will the markets tank if we go to war with North Korea?

Posted on 12/4/17 at 7:07 am
Posted by lsuguru
Lake Charles
Member since Aug 2007
1782 posts
Posted on 12/4/17 at 7:07 am
Eventually NK will pay the price for their aggressive behavior. How will the markets react?
Posted by wickowick
Head of Island
Member since Dec 2006
45793 posts
Posted on 12/4/17 at 7:12 am to
If we go to war with NK, there will be, at a minimum, hundreds of thousands dead in NK, Seoul and tens of thousands of US deaths. The northern part of Seoul will be in ruins and any NKs not dead will require massive amounts of humanitarian aid. So the answer is yes.
Posted by UpstairsComputer
Prairieville
Member since Jan 2017
1567 posts
Posted on 12/4/17 at 8:11 am to
quote:

tens of thousands of US deaths


I just can't see this happening. This is a brief conflict to topple the government mostly from air and navy forces at the outset. Beyond that, we aren't dealing with a potential pool of a billion terrorists to pull from for guerrilla warfare.

Regarding the market, yes, it would likely drop pretty harshly until the reality that the damage to Seoul was limited to just a few days. Priority #1, destroy any weapons capabilities. Have to believe we could get that done within a few days.
Posted by wickowick
Head of Island
Member since Dec 2006
45793 posts
Posted on 12/4/17 at 8:48 am to
There are almost 30k US troops in SK, any hostilities will probably be all-out war because NK knows they will lose and they only have about a week before they cease to operate as a country. The US will lose most if not all of its ground troops near the DMZ.
Posted by LSURussian
Member since Feb 2005
126951 posts
Posted on 12/4/17 at 8:57 am to
quote:

How will the markets react?
Down then up.
Posted by Skeezer
Member since Apr 2017
2296 posts
Posted on 12/4/17 at 10:35 am to
No. It will probably go up
Posted by I Love Bama
Alabama
Member since Nov 2007
37694 posts
Posted on 12/4/17 at 11:24 am to
I understand where you are coming from, but I disagree. That scenario is likely if we invade (similar to Iraq).

However, I think we may see tactical nukes dropped and wipe everything out at once to keep that from happening.

If we do invade, I agree with everything you are saying. It will be ugly.
Posted by Lima Whiskey
Member since Apr 2013
19094 posts
Posted on 12/4/17 at 6:45 pm to
It would be a brutal conventional war. You’re looking at casualties in the hundreds of thousands.

In wargames we usually air burst nukes to stop the invasion.
This post was edited on 12/4/17 at 6:46 pm
Posted by tiger perry
Member since Dec 2009
25668 posts
Posted on 12/4/17 at 7:16 pm to
I have stop losses on my stocks just in case due to this scenario. I pray for some kind of peaceful resolution.
This post was edited on 12/4/17 at 7:18 pm
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 12/4/17 at 7:40 pm to
About the only thing I'm sure of is that VIX will soar.
Posted by Jag_Warrior
Virginia
Member since May 2015
4080 posts
Posted on 12/4/17 at 8:01 pm to
You realize that in a gap down scenario, your stop loss price won't mean much.

$120 stock with a $100 stop loss opens at $90... your execution hits at $90. You might consider buying put options as a form of insurance instead.

As for any sort of action involving North Korea, nothing would be cut & dried because of the China factor. Plus, global markets wouldn't react well to a short fat guy playing with nukes.
Posted by tiger perry
Member since Dec 2009
25668 posts
Posted on 12/4/17 at 8:04 pm to
Thanks for the advice.
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