If you’re like me, you’re wondering what this war between Israel and Lebanon is going to do to the market here in the US. Fear not, Smith Barney’s Consulting Group has produced an article that attempts to answer just this question…
According to this article, “…the current fighting in Lebanon and the Gaza Strip doesn’t appear to pose an immediate threat to the U.S. economy or the stock market.”
Other interesting tidbits from the article:
“The fighting, while serious, is far removed from the vital oil infrastructure and sea lanes of the Persian Gulf.”
Referring to a historic study of 5 previous conflicts between the two countries: “U.S. stock market gains and losses during actual wartime periods tended to be relatively small, but were positive in four of the five cases.”
Bottom line, it doesn’t seem to be time to duck and run.
