Benjamin Graham: The War Economy and Stock Values

An article penned by Benjamin Graham and first published in The Analysts Journal during the fourth quarter of 1951. [timeless] “When the Korean crisis burst upon us last June, Wall Street analysts rightfully began co forecast a near-war or full-war economy, complete with price controls, at least some rationing, and a heavy excess profits tax. Granting that the volume of business would be tremendous, they still were inclined to anticipate a serious reduction in corporate net after taxes. This prospect, combined with the war situation itself, led to predictions of lower stock prices.” — Benjamin Graham introducing his essay; The War…