Syria Takes Starch Out of Stocks by Zacks Investment Research
Early on Monday, stocks were accelerating past the 50 day moving average it eclipsed on Friday. All of a sudden, stocks hit the skids as John Kerry did some sabre rattling over strong evidence that Syria is employing chemical weapons. As the session closed, we were back under the 50 day moving average.
Yes, the market hates uncertainty. And few things provide greater uncertainty than the prospects of war. That explains Monday's reaction.
Gladly history also shows that the stock market typically rises shortly after a new war begins. Some call it a "Patriotic Rally". However, I am certainly not advocating that we go to war just to make a couple more bucks in the stock market.
The point being, that I would definitely not get more defensive in the face of this news. And would recommend buying more on any short term dips.
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