The Market as a Reflection of Society – Wars, Elections, and Crises in Our Emotions
In 2008, during the financial crisis, many traders saw their accounts collapse within weeks. Some panicked, while others learned to adapt. More recently, wars and elections have had a similar effect: markets react like a mirror of what’s happening in society. Every headline, every speech, every international conflict is reflected both in candlestick charts and in traders’ minds.
How Global Events Impact the Markets
- Wars: often increase demand for safe-haven assets such as gold (a commodity used as a store of value) and the U.S. dollar.
- Elections: create volatility in indexes like the S&P 500 (an index of the 500 largest U.S. companies), as investors react based on who might lead the economy.
- Economic Crises: drive massive sell-offs in stocks, declines in the real estate market, and sharp shifts in currencies.
Traders must learn that they are not trading only against charts, but against the very pulse of society.
Figure 1. Example of how a crisis triggers market declines, followed by a gradual recovery.
Analogy with Real Life
In life, when a social, family, or political crisis occurs, people react with either fear or resilience. A mass layoff creates anxiety within families; a presidential election can divide opinions and create uncertainty. The market reflects these same emotions, amplified through prices and movements.
Our Experience
Ismael Monte de Oca, since 1997, has witnessed wars, elections, and crises reshape the markets. I, Marlen GonzaleZ, since 2011, of course don’t have the same level of experience in these specific events, but I have accompanied him for a considerable time and have learned how to invest even in difficult times. We both know that the key is not to avoid crises, but to learn how to read them and adapt. In our Seminar, we teach how to interpret price action in the middle of global news and how to manage psychology to avoid being swept away by collective panic—whether investing in the short, medium, or long term.
Conclusion
The market is a living reflection of society: wars, elections, and crises will always leave their mark. A successful trader is not the one who predicts the future, but the one who understands the present and acts with discipline. At Stock Trade Pro, we prepare every student to trade with a cool head in the middle of the storm, so they can protect their capital. Over time, we’ve learned to use these strategies, and they have helped us keep moving forward day by day.
