Standard financial theory predicts a "flight to safety" during severe crises, anticipating that rational investors will reduce exposure to local risks. We challenge this consensus by distinguishing between internal institutional crises and external security conflicts. We exploit a rare natural experiment in Israel during 2023, a year characterized by two distinct exogenous shocks: a domestic constitutional crisis (Judicial Reform) and a major security war ("Swords of Iron").

Combining archival data on household capital flows with a pre-registered laboratory experiment (N=405), we document a striking divergence. Field data reveal that while the internal crisis triggered significant capital outflows, the outbreak of war-despite posing a severe physical and economic threat-elicited active capital inflows into the domestic market.

The controlled experiment isolates the causal mechanism, replicating this anomaly under identical financial parameters (risk and return). We find that the war context acts as a "Strong Situation," activating patriotism and a sense of civic duty that override rational risk aversion. Mediation analysis confirms that non-pecuniary motives-specifically the desire to support the local economy-serve as a financial "shield" during external threats. These findings suggest that national solidarity is a tangible economic asset that stabilizes markets during security wars.