Stocks to Rise if Bullets Fly, Experts Say

Reuters ^ | February 5, 2003 | Haitham Haddadin

[nwrep]

Stocks to rise when bullets fly if history a guide

By Haitham Haddadin

NEW YORK (Reuters) - If history is a guide, rockets raining down on Baghdad could spark a rally on Wall Street.

Macabre as it sounds, stock market rallies have been a consequence of war in the past. And an attack on Iraq would remove some of the uncertainty that has clouded the market.

"As soon as the bullets start to fly we get resolution," says Ken Tower of CyberTrader Inc. "That's positive for consumers and the economy, so we expect the market takes off in a continuation of the rally we saw from October to December."

Tower's forecast comes with a caveat, though. Like others, he warns investors not to bet the whole farm on the outcome of a potential Desert Storm II.

"Wars are like snow flakes; no two have the same shape," says Tower, who in his job as chief strategist at the Charles Schwab unit has studied stocks' reaction to periods of war.

There seems to be historical evidence that suggests war has been typically bullish for stocks.

The Dow Jones industrial average has posted a significant rise in the period that follows major events in U.S. history that precipitated war, according to Gibbons Burke at MarketHistory.com.

[nwrep]

Let the bullets fly....

[dixiechick2000]

Bump that!

[CyberAnt]

It's probably true, because it signals all sorts of supplies which will be needed by the fighting troops.

[eno_]

Market psychology 101: If an event is anticipated, that anticipation will be reflected in market prices. People expect fear to maximize whent the bullets fly, so the optimal time to buy is before these anticipators get their orders in.

And if you can pinpoint that time, you are obviously NOT posting FR, since you are too busy enjoying your yacht full of sexy babes in the Greek isles.

[Torie]

Ignore the "experts." On this matter, I am confident I am giving good advice. IF I had followed the advice of experts on matters on investment, while I might not be literally eating dog food, I would be eating it figuratively. When it comes to pornography, the porno that does real damage is in the financial neighborhood.

[unending thunder]

""Wars are like snow flakes; no two have the same shape," says Tower, who in his job as chief strategist at the Charles Schwab unit has studied stocks' reaction to periods of war"

This quote exemplifies the penetrating intellect of the Street Traders. Harold Macmillan UK Prime Minister described the London Stock Exchange as,"..that squalid casino at the end of Threadneedle Street".

Glossary Stockbroker = Huckster Independent Financial Advisor = Independant salesman

[Rockitz]

Get ready for Bear Market Rally #16, then a crushing sell-off if any little thing goes awry. At some point after the start of the war, this market will see fresh lows. You heard it here first.

[Man of the Right]

The relief rally will be short. The bear market continues.

[patriot5186]

And if you can pinpoint that time, you are obviously NOT posting FR, since you are too busy enjoying your yacht full of sexy babes in the Greek isles

What?!? I love to post. It gives me a break from all those sexy babes on my yacht. thanks for the chuckle.