Strategic Investment Group

March 2003

Amid the heated debate about the wisdom, morality, and potential consequences of the current war in Iraq, war's potential economic and financial consequences are often exaggerated. In the capital markets, a special risk premium is thought to exist during wartime, as asset prices are discounted to adjust for increased market risk. Although we find historical evidence of a war risk premium, its importance to investment decision-making has been modest in relation to volatility, inflation, and earnings growth.

< Next

Previous Brief >

| Privacy Policy

| Site Map

| Client Login

Strategic Investment Group Home | Portfolio Management Solutions | Asset Allocation | Contact Strategic Investment Group

® A registered service mark for affiliated investment managers: Strategic Investment Partners, Inc.; Strategic Investment Management, L.P.

Nothing on this site should be considered a solicitation to buy or an offer to sell shares of any Strategic product in any jurisdiction where the offer or

solicitation would be unlawful under the securities law of such jurisdiction.