World War I once more?

Source: Asia Times:

By Martin Hutchinson

In early August next year, it will have been 100 years since investors suffered a very nasty shock indeed, when the London and New York stock markets closed for some five months and many international bonds previously thought to be high-grade proved worthless. It should be remembered: for the average investor, World War I, the cause of this disruption, blew up very quickly out of a clear blue sky.

The sky is again blue; certainly many markets, notably that for US stocks, are priced as if it were positively ultra-violet. So could such an event occur again?

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Categories: Americas

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