> If this is true, then why does the Market seem to rally
> every time a bomb is dropped?...KRD
>
The 'Market' is a collection of mostly herd mentalities looking for any excuse to rally or any possibility of a quick fix after a three year bear run. The ever changing headlines describing its behavior are a collection of endlessly recycled sound bites.
The overriding feeling is that if (US) bombs drop (the more the better), then the end to the war must be imminent. If the end of the war comes quickly, it can only be because America emerged victorious. Once all this 'preoccupation with war' is over, American corporations can go about focusing on increasing their profitability, domestically and via all those new opportunities in the Middle East arising from stability somehow being ushered into the region. Not to mention new contracts, defense, communication and insurance, resulting from occupational control.
This is all despite appalling fundamentals, debt overhang, cash flow deficits, and poorly regulated practices. That said, today's 11 am headline was 'stocks fall as tensions mount', accompanied by the explanation: 'worries remain that Saddam may torch oil fields.' This was followed by the 12 pm 'buyers remain cautious.'
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