Tuesday, 30 November 2010

How Does War Affect Stock Markets?


There were 2 major wars in the last 20 years. The first Gulf War started on 2 Aug 1990. The Dow was in a midst of an 18 year bull cycle that started from 1983 - 2000.

The second Gulf War started on 20 Mar 2003. That was again the start of the last bull run that began from 2003 and ended late 2007.

So war actually boosts stock markets world wide. It boosts defence spending, infrastructure spending and liquidity to calm markets.

No comments:

Post a Comment