Many people believe that “War is good for Stocks” because the government pumps billions into the economy thus creating jobs and those new employees spend money having a multiplying effect on the economy. And when the economy booms the stock market booms right? In the following chart we can see that shortly after the U.S. entered WWII that the stock market began rising and it continued to rise throughout the remainder of the war. This is possibly why U.S. investors have come to believe that “War is Good for the Market”. But…