A quick and victorious war lasting no more than two or three months is what most mutual fund managers anticipate will take place in Iraq, but if that does not happen, it could spell serious trouble for the markets, which have already factored such a scenario in. Even those enthusiastic about a quick resolution temper their remarks by saying an unimaginable disaster could take place, instead.

After weeks of speculation about the crisis in the Middle East, the so-called clarity of the war's first bombs gave a boost to the markets, which fund economists and managers welcomed, at least in the short term.

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