Reply to Dow below 40000 by end of the year

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[quote=Anonymous][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]

The stock market is propelled by tech companies, their data centers and software and are way less dependent on oil inputs.

Energy to power data centers is the only crux, but it’s easier to switch to renewables or nuclear (and look how Microsoft is building a nuclear plant) for data centers, than retooling a smelter or plane to run on electricity. [/quote]

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