Wealth coach and CEO of Profit Jumpstarter, Keisha Bailey, says the Israel-Hamas war has increased volatility on stock exchanges globally. She urged investors to be cautious in the coming weeks.

The militia group Hamas, based in the region of Gaza, launched a surprise attack on Israel just over a week ago, which killed dozens of people. Israel’s Government responded by declaring all-out war with the group, with Prime Minister Benjamin Netanyahu promising to “cripple them mercilessly and avenge this black day they have brought upon Israel and its citizens.”

Speaking on Taking Stock with Kalilah Reynolds, Bailey said that as news of the severity of the war filtered across the world stock prices tumbled.

“In major markets across the world, stock prices started falling because of the same panic and fear that we saw with Russia and Ukraine in 2022,” she said.

She noted that as with the Russia/Ukraine war the year, oil prices soared as investors questioned how a conflict in this region might affect the global supply and delivery.

“And then gold, which is normally seen as a safe haven investment, those prices started running up higher, as well as bonds because these are the safer types of investments,” she said.

She noted, however, that those changes were short-lived as markets reversed.

“This is just the classic volatility. The textbook definition of volatility, it can be down one day and up the next,” she said.

Bailey suggested that the quick reversal was likely due to some investors using the opportunity to buy stocks at a discounted price.

She also suggested that “investors could be shrugging off the war to say, ‘it will not have a large global impact’,”.

However, the CEO said investors should be diligent in deciding when to buy and sell for the next several weeks.

She noted that the situation in Israel is complicated and ever-changing. She added that stock markets will likely continue to volatile as the situation unfolds.