Economic fundamentals still a concern

The start of the war in Iraq brought some relief to beleaguered equity markets, which had fallen precipitously in the preceding weeks. Uncertainty over the war's timing and duration had weighed heavily on investor sentiment, but the invasion prompted a sharp rally in equities. Early progress by US and British troops augured well for a brief war, and this supported the bounce back from market lows. There is a precedent for such a move. At the start of the last Gulf War, global markets rose almost 20% during Operation Desert Storm. In the near-term, markets will continue to trade on ...