Skip to main content
Bloginvestingstock market

Standing Tall Against Terror

By May 23, 2016October 13th, 2022No Comments

Paris. San Bernardino. Istanbul. Brussels. Lahore. Over the past year, it seems the only thing to interrupt constant U.S. election coverage has been breaking news of violent terror attacks from around the globe. The most recent possible attack being linked to the lost EgyptAir Flight MS804, which disappeared over the Mediterranean on May 19. Terrorists hope to create widespread fear and wreak economic damage, and the cost of lost lives can’t be measured. Fortunately, the violence seems to be having less financial impact with time. Investors appear to be standing stronger instead of rushing to sell following such attacks.

According to a March USA Today article by Adam Shell, “The impact of terror attacks on financial markets has become less dramatic and far more muted in recent years, compared with the massive sell-off following the Sept. 11 attacks in 2001, when the broad U.S. stock market tumbled nearly 5 percent in the first trading day after the attack and was down nearly 12 percent five trading days after planes hijacked by terrorists brought down the twin towers at the World Trade Center in New York.”

Terror attacks can impact the global economy by affecting consumer confidence, tourism and defense security expenses. These effects are similar to those seen following other unexpected disruptions, such as natural disasters (earthquake, tsunami, etc.) or a man-made calamity like an oil spill. When these events occur, anxious investors’ concerns often cause initial declines in the markets. Eventually, however, markets typically swing back.

Multiple studies of past market data have shown the longer you have money invested in the market, the less volatility your portfolio experiences. That’s because time allows the highest highs to offset the lowest lows. For example, BTN Research reported the total market capitalization of the U.S. stock market was $23.7 trillion as of March 31. At its bear market low on March 9, 2009, the country’s total market capitalization was $8 trillion. That’s nearly triple the bottom in less than a decade. While periods of market negativity, like those following terror attacks, should get your attention, you don’t need to act. They are often temporary and minor in the grand scheme of things.

Don’t let fear affect your plan. Patience, confidence and a well-balanced portfolio can help you manage market fluctuations better – regardless of their cause. To further discuss what effects global terrorism may have on the markets or your personal portfolio, call Jordan Dechtman, Denver wealth manager at 303-741-9772, email him at Jordan@JordanDechtman.com or visit our website www.JordanDechtman.com to schedule an appointment.

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.dechtmanwealth.com.

Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.

Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Join our newsletter

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.