North Korea Nuclear Test: Bullish?

By iamned - Last updated: Monday, May 25, 2009 - Save & Share - One Comment

Believe it or not, North Korea’s test of nuclear weapons may, in fact, be bullish. While scenes of nuclear winder, mass extinction, and giant mushroom clouds may make for a thrilling Hollywood feature, it’s also a compelling reason to buy stocks, too.

Futures dived following the test, but have since fluctuated in positive/negative territory

Historically, foreign conflict has been beneficial for the stock market and economy. The market surged in the 50’s and 60’s during the Cold War. World War 2 enabled the United States exit the Great Depression. The Iran conflicts in the late 70’s had no adverse impact on the economy, and proceeded a historic eighteen year bull market. Finally, as wee all know, the first and second Iraq wars were invaluable economic stimulants, as evidenced by the bull markets that followed in each instance.

Maybe Obama should try to gently provoke North Korea into testing more weapons. The same for Iran, too. That will help push gas, food and commodity prices higher, the dollar lower, which is thus good for the stock market.

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One Response to “North Korea Nuclear Test: Bullish?”

Pingback from » Monday Update: Futures Keep Rising; Chinese Accumulate Dollars
Time May 25, 2009 at 6:19 pm

[...] futures is drawing the ire of short sellers all over the blogosphere. Apparently the North Korea nuke test is bullish, as evidenced by the rebound in Asian and European markets last night. Long MA POT and GOOG [...]

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