The Cost of More Troops

An article written by Joseph Quinlan of Bank of America.

While a surge in extra U.S. troops in Iraq is hardly a done deal, such an option, if adopted, could cast a long shadow over the U.S. financial markets. The decision...could prove to be an early tipping point for the markets. Such a move could trigger the following:

An unexpected jump in oil prices...

An increase in the cost of waging war...

An exodus out of U.S. dollars...

An even deeper divide between Republicans and Democrats...

A slip in U.S. consumer confidence...

In our opinion, a troop surge could very well lead to an unexpected market swoon.

The above information has been redacted from the article as it originally appeared on Barron’s

Online on January 8, 2007.