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.
This was the consensus of fund economists and managers late Wednesday, as U.S. and allied troops poised for their first strike against Iraq last night.
In order for the economy to revive and markets to return to normal levels, the Iraqi situation must be resolved, Martin Schulz, director of international equity investments for the
Schulzs yearning for a resolution in Iraq echoed the obvious sentiment of the Dow, which has risen 741 points over the past six trading days through Wednesday, first when it seemed the war might be delayed, then again as U.S. troops prepared to strike. But the bear market will probably "mute" any rally a victorious war might bring, Schulz added.