Pretty interesting chart here from The Stocks Traders Almanac and Barry Ritholtz. In essence, the argument can be broken down into this:
1) Stock markets become depressed due to economic downturn
2) Wars result during times of economic downturn
3) Government spending via war and stimulus support the economy
4) Inflation results
Interesting….
Source: The Big Picture
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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