Have wars held back the Dow Jones?

[witnesstheda]

Dow Jones heading downwards - Will it fall below 11000 again? Well right now it's fallen back to the 11100s. However there IS talk of invading Iran, and two things can reverse the dow's plight: first the talk can stop and the fear of war with Iran will subside, easing oil scares, or the war will happen, ill-advisedly, and the Dow will rise back up from the low 11000 area, as it does every time the USA uses bombs to avert that all-important reversion to pre-1991 economics. The Iraq war kept the prices falsely higher for far less time than the Afghanistan war and the Iran war could theoretically make little or no difference or, worse still, lead to an escalation of energy crises leading to the dow sliding rapidly toward the low 10,000 area and beyond, rather than making any final attempt to survive America's suicidal foreign policy decisions of the last 50 years.

[broken link removed]

Could it be that the USA would have been much richer now if it hadn't tried to go on an oil-grabbing adventure?

 

[PMU]

The answer is probably No. There is research ‘Extremes of Equity Market History’ in a report published by ABN AMBO that shows bear markets (e.g. Wall St crash, Oil shock, Tech crash) cause greater declines (i.e. peak to trough loss) in the value of equities than wars [except for Japan during/after WWII], and that the loss suffered in the worst affected markets is very great. So wars will cause a loss but not as great a loss as bear markets.