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Howard Gold’s No-Nonsense Investing: This is how you should respond to Monday’s relief rally in stocks

War didn’t break out with North Korea over the weekend, so stocks had a big relief rally Monday.

The Dow Jones Industrial Average DJIA, +0.62% closed up 135, leaving it just shy of breaking through 22,000 again, while the S&P 500 SPX, +1.00% gained 1% and Nasdaq Composite COMP, +1.34% climbed 1.3%. Even the lagging Russell 2000 small-cap index RUT, +1.46% racked up big gains, while gold lost ground and the CBOE Volatility index VIX, -20.50% plummeted 20%.

So, nothing to worry about, right?

Wrong! This is classic Wall Street short-term thinking: The risk of a second Korean War today is as great as it was last week, and the consequences of even a conventional war in this critical region would be catastrophic.

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