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Reply to "Dow below 40000 by end of the year "
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If the war last longer than 6 months yes [/quote] We were at war for 20 years in Iraq and Afghanistan and the market did great.[/quote] Yes, but those wars didn’t threaten world oil supply. Without oil, no modern economy works. And, with high oil prices, the prices of all goods inflate. And as prices inflate, so do interest rates. And, as interest rates inflate, the present value of future income falls. And, lower earnings PV equals lower stock prices. If the Administration cannot secure the world’s oil supply and get oil prices down, the market WILL tank. [/quote]
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