In times of global conflict, especially during a world war, traditional investment strategies are often upended by geopolitical instability, supply chain disruptions, and economic uncertainty. However, history shows that certain assets and sectors tend to perform better or offer relative safety during wartime. Here’s where investors typically look to protect capital and potentially find gains:
1. Precious Metals (Gold & Silver)
Gold is historically the go-to safe-haven asset in times of war. It preserves value when currencies weaken or inflation spikes. Silver may also gain value due to industrial demand and safe-haven status.
Why invest? 
- Hedge against inflation
- Globally recognized value
- Not tied to any single economy
2. Defense and Military Stocks
Companies producing weapons, surveillance systems, drones, and defense technologies often see growth during global conflicts. Major defense contractors benefit from increased military spending.
Examples:
- Lockheed Martin
- Northrop Grumman
- BAE Systems
3. Energy and Oil
War often disrupts oil supplies, leading to price spikes. Investing in oil, natural gas, and energy infrastructure companies can offer significant upside.
Watch:
- Oil ETFs (e.g., XLE)
- Energy producers and refiners
- Renewable energy firms gaining strategic relevance
4. Agriculture and Food Production
Global war impacts food security. Companies involved in food production, fertilizers, and supply chain logistics often become more valuable.
Look at:
- Agricultural ETFs
- Fertilizer companies (e.g., Nutrien, CF Industries)
- Water and grain suppliers
5. Cybersecurity and Infrastructure
With modern wars including cyber components, cybersecurity stocks tend to rise. Digital security, cloud infrastructure, and communications firms grow in importance.
Key picks:
- CrowdStrike
- Palo Alto Networks
- Fortinet
6. Safe-Haven Currencies
Currencies like the Swiss franc (CHF) and U.S. dollar (USD) are typically seen as stable during international turmoil. Currency ETFs or forex strategies may be used to hedge currency risk.
7. Commodities and Essential Materials
Resources such as uranium, copper, lithium, and steel are vital during wartime. Investing in mining firms or commodity ETFs may offer long-term value.
8. Real Assets: Land and Infrastructure
Tangible assets like farmland, industrial property, and data centers can hold value or appreciate, especially in more stable or neutral regions.
Final Thought
Investing during a world war requires caution, diversification, and a focus on resilience. Defensive industries, tangible assets, and hedges against inflation become far more important than high-growth speculative bets. While no investment is completely safe during global turmoil, strategic positioning can help preserve and even grow capital through uncertainty. Always consider geopolitical exposure, government policies, and risk tolerance when rebalancing your portfolio in wartime.
