What Markets Do During War

Understanding what markets do during war depends on what country you’re living in.

Ironically (or NOT) in the case of the USA, the markets perform surprisingly well during war.

Maybe it has something to do with the fact that we spend nearly $1 Trillion per year on the Military Industrial Complex (MIC)…and war is music to their ears.

Or Maybe guys like former VP Dick Cheney know war is coming and position their companies (Cough! Halliburton Cough! Cough!) to make billions via presidential favors and gouging taxpayers in the process.

Or Maybe, JUST Maybe the smart money always seeks safe harbor.  And, like it or not, we’re still the safest place to be on the planet.

As a result, most investors miss substantial moves in the market thinking that during war, everything is going to crash.

During War

And when this happens it’s simply more confirmation of and old Wall Street adage of how the markets move in the direction that frustrates the most people.

Sad to say that one of the most highly decorated Marine’s in history – Major General Smedley Butler – summed up war the best in his book “War is a Racket.”

“I spent 33 years and four months in active military service and during that period I spent most of my time as a high-class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.”

― Smedley D. Butler, War is a Racket

Circa 1935

If Major General Smedley Butler was alive today, he’d be pounding the table about the corruption and money-laundering in Ukraine and how WW3 is already underway.

So, instead of worrying about losing money during war, learn how to make money from it in our February edition of “…In Plain English” (HERE).

Share this with a friend…especially if they think we’re going into war.

They’ll thank YOU later.

Remember: We’re Not Just About Finance

But we use finance to give you hope.

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