Is war good for your super? Alex Jamieson breaks it down

As global tensions intensify and defence spending surges, many Australians are quietly wondering - could war actually benefit their super?
 

According to Alex Jamieson a highly respected financial advisor and founder of AJ Financial Planning advisory, the relationship between war and investment performance is complex, but history shows that financial markets and superannuation balances can sometimes defy expectations during geopolitical crises.
 

"War is never good from a humanitarian or geopolitical standpoint," Jamieson said.
 

"But from an economic perspective, history tells us that markets can respond in surprising ways and certain sectors can thrive."
 

What history tells us
 

Jamieson pointed to several key moments in modern history that demonstrate how war can reshape economic dynamics and market behaviour.
 

"During World War II, US industrial production surged and equity markets steadily rose after the initial shock," he said.
 

"In the wake of the Gulf War in 1990, markets initially fell on uncertainty but rebounded strongly once military action commenced and oil supplies stabilised."
 

More recently, the 2022 Russian invasion of Ukraine sent shockwaves through global markets, particularly in energy and commodity sectors. While tech stocks suffered, oil, gas, defence and agricultural companies saw strong returns. Many Australian super funds with exposure to these sectors performed better than expected during that period.
 

"These examples show that while conflict creates volatility, it also fuels certain parts of the economy," Jamieson explained.
 

"For super fund members, this means your balance could actually benefit if your fund is exposed to the right areas, such as energy, commodities, infrastructure and defence."
 

What it means for Australian super
 

Jamieson said many Australians are unknowingly exposed to the market forces shaped by global conflict, particularly through diversified superannuation portfolios that invest in Australian resource companies, global infrastructure funds, or emerging markets affected by commodity
pricing.

"It's not about glorifying war, it's about understanding where your money is and how macro forces influence performance," he said.
 

Funds with strong international diversification or active asset allocation strategies are often better placed to absorb shocks and benefit from short-term gains in specific sectors. SMSFs with direct equities in defence-related or commodities-linked industries can also see outsized returns during periods of prolonged geopolitical unrest.
 

But proceed with caution

Jamieson warned that chasing short-term performance based on war headlines is dangerous.
 

"Markets are emotional and can react sharply to fear, then just as sharply to optimism," he said.
 

"It's important not to get caught up in reactive decisions. A long-term, diversified strategy is still the best safeguard for superannuation growth."
 

What should Australians do now?

His advice for Australians is simple: review your super, understand what sectors and regions your fund is exposed to and consider professional financial guidance.
 

"In times of global uncertainty, the worst strategy is no strategy. Super is a long game and being informed is your best defence," Jamieson said.
 

With over 20 years of experience helping Australians build financial security, Alex Jamieson is one of the country's most trusted voices in wealth management. His message in uncertain times remains clear: plan early, diversify wisely and don't let global tension dictate emotional financial decisions.
 

"Follow charts not news. This approach provides the best outcomes."
 

About Alex Jamieson
 
Alex Jamieson is the founder of Melbourne-based advisory firm, AJ Financial Planning. With a firm belief in responsible investing, Alex crafts investment portfolios for clients that not only meet their financial objectives but are also sustainable and match their ethical values.
 
A highly respected financial advisor, Alex is considered one of the country's leading experts on all matters financial planning, investing and retirement.
 
http://www.ajfp.com.au/