How do Markets React to Terror?
– by Sarah Hannibal
As of November 30, 2015 there have been over 300 terror attacks this year. Most of these attacks have been in in places that our US news media does highlight and in places where terror attacks have been all too common (i.e. Afghanistan, Iraq, Somalia, and Pakistan). The recent attacks in Paris put westerners on heightened alert. People are skittish, not only about travelling but also about the markets.
It is very sad that the world we live has so many acts of deliberate violence and sad that they are becoming so common place. After Paris, we anticipated the markets would be down. We were surprised they did not affect investor sentiment at all and wanted to take a minute to reflect on market reactions to terror incidents.