The stock market started out like a rocket ship in early January, with most major stock market indexes rising significantly in the first two weeks of 2003.

Stock market investors were tired of being bears and chose to ignore the continuing geo-political situation with Iraq, North Korea, and Afghanistan in early January.

The economic statistics that were being disseminated throughout January continued to depict that the U.S. and global economies remained anemic, the labor markets continued to deteriorate, and that corporate profits for many corporations remained elusive.

In mid January stock market investors woke up one morning and decided to regain their sanity and bearish-ness, and proceeded to sell most stocks off with a vengeance. All the meteoric gains that many stocks achieved by mid January were lost in a wisp.
Against this backdrop, the geo-

political tensions continued to escalate in reference to Iraq and North Korea.

Investors seemed to accept that in fact the U.S. would  actually invade Iraq before the Spring of 2003 and therefore the stock market might be the place to avoid until the dust had settled.

The pundits on Wall Street had a field day during January extrapolating from every bit of political rhetoric released to the public by our noble politicians, the outcome of a short or long war on the U.S. economy and the stock market.

Most of the global stock markets mirrored the performance of the U.S. stock market throughout January, rising in the first two weeks, and plummeting in the last two weeks.

The bond market as a whole was more or less range bound throughout January albeit losing some ground during the bullish run-up in early January.
Most major stock market indexes continued to decline in

February. Investors again embraced the concept that the U.S. and global economies  could be affected in a negative way as a result of the up-coming war with Iraq, and the escalating tensions on the Korean peninsula.

The technology laden Nasdaq Composite Index (NASDAQ) did however gain some upward momentum in mid February finishing that month  about where it had started.

All the major stock market indexes did however finish February near their lows for 2003. February marked the third month in a row that most major stock market indexes finished down.

The global stock markets again mirrored the U.S. stock market throughout February, that is rising and falling in sync with the U.S. stock market daily.

The bond market was again the big winner throughout February.