As the world waits to see whether America will attack Syria, we look at how stock markets have behaved during previous conflicts.
Different sectors respond very differently around periods of conflict, but not entirely as one might expect.
A study published by Stanford University in the US, analyzing the impact of the 2003 Iraq War, said: "War is bad for consumer discretionary industries, airlines, finance and information technology. This is unsurprising. It is likewise positive for gold mining and oil stocks, particularly the sectors of the oil industry that would benefit from higher oil prices."
Quote:Nathan Rothschild, one of the founders of the Rothschild banking dynasty, is probably the single investor most associated with profiting from conflict and the related politics. The network of agents and investments he built across Europe in the early 1800s enabled him to learn of Wellington's victory at the Battle of Waterloo in 1815 ahead of other investors. He sold heavily, driving the market down and encouraging others to sell, too – only to quietly buy again before the victory became known and markets rose. He is said to have coined the maxim: "Buy on the sound of cannons, sell on the sound of trumpets."
Read the whole thing at http://www.telegraph.co.uk/finance/perso...Syria.html