Pretty interesting chart here from The Stocks Traders Almanac and Barry Ritholtz. In essence, the argument can be broken down into this:
1) Stock markets become depressed due to economic downturn
2) Wars result during times of economic downturn
3) Government spending via war and stimulus support the economy
4) Inflation results
Source: The Big Picture
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.