Economics & Finance / Finance & Investment / Stock & Capital Markets

How Nationalism Destroyed Stock Markets: The 2005 & 2010 China-Japan Crisis

Political conflict doesn't just make headlines—it wrecks portfolios. This video breaks down a landmark study from the Review of Financial Studies on the 2005 textbook dispute and the 2010 Senkaku/Diaoyu Islands collision. Discover how nationalism instantly slashed stock values for companies exposed to China or Japan, with effects lingering for months. We reveal the hidden mechanisms: in China, it was government intervention through state-owned enterprises; in Japan, it was consumer backlash and retail investor panic. No rebound, no recovery—just pure economic damage. Perfect for investors, economists, or anyone wanting to understand how geopolitics hits your wallet.