>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