Markets Confront Terror & Tragedy

This week’s Market Update is posted at Alpha Baskets and includes the following;

Of course the big news of the week was the terror attack in Belgium on Tuesday. We will limit our discussion to the markets’ reaction to the event which was almost nil. When the September 11 attacks occurred the US market was closed for several days and when it reopened the S&P 500 fell approximately 10% which took three months to recover. Subsequent attacks have seen ever smaller reactions. Even the Belgium 20 Index was higher by Wednesday morning than where it had closed Monday, before the attacks. These events simply have not been reasons to sell.

Please click through to read the entire update.

To the above I would add that we’ve had many posts about markets not necessarily reacting to news the way people might think including how markets now react, or don’t react, to terror events and other external shocks. With the S&P 500 within 100 points of its all time high, there has been no external shock that has ruined someone’s chance for retirement (assumes proper diversification and asset allocation). If the market gets derailed by some event and takes six months to recover then the only threat is an investor’s behavior as a result of the event, not the event itself.

I went to a car show over the weekend and took a few pictures including the Mustang Shelby GT 350.

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The second picture is from the Mint 400 from early in March. The Trophy Trucks are just amazing to look at.

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