During World War I, markets didn’t behave like modern traders imagine. Exchanges were shut for months. Capital didn’t rotate into “cheap assets” — it ran into safety. Gold, cash, and geography mattered more than entry prices.

Yes, US stocks later recovered. But the real money wasn’t made by traders buying dips. It was made by industrial companies tied to war production and by those inside the system of government contracts.

War didn’t reward risk-taking. It rewarded position.

By World War II, it became even clearer. When real shortages hit, financial assets stopped mattering. People didn’t trade stocks or bonds. They traded food, fuel, and basic goods.

In extreme conditions, money loses its function. Survival replaces investing.

The only ones who consistently made money were those closest to resource flows. Military contractors, logistics, finance intermediaries. Not the average investor.

The takeaway is simple.

“Buy when there’s blood” works in controlled market fear.
It breaks down in real systemic crises.

When things truly collapse, the game changes. Not prices. The rules.