A cost analysis

Doug Henwood dhenwood at panix.com
Thu Mar 20 14:01:42 PST 2003


Kevin Robert Dean wrote:


>If this is true, then why does the Market seem to rally
>every time a bomb is dropped?

They're anticipating the end of the war already. Same thing happened in 1991 - the market took off as soon as the war began. This is by no means a long-term consideration. The Wall Street consensus is that the economy has been held back by the uncertainty of the run-up to war, and that uncertainty is now being resolved. They've already priced in a quick victory (not only in stocks, but in oil too).

Doug



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