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The right response to terrorism

logo2014_tagstack-sitehead_232x92_2xBy Steve Reitmeister Executive Vice President, Zacks Investment Research

(I originally wrote this in November 2015 after the Paris terror attacks. Tuesday’s events in Brussels warrants a repeat of this message).

9/11 shook us all to the core. Fear ruled the day where everyone contemplated what habits could be changed to decrease the odds of harm coming their way.

As time wore on, we collectively realized that hiding at home was akin to letting the terrorists win. Therefore the right response was to exercise our freedom to enjoy our lives as we see fit.

Since then there have been several acts of terrorism around the globe. Each time was met with greater resolve to keep the flame of freedom alive.

From an investor perspective we see that terrorist acts would first harm the stock market soon followed by a bounce back to full health. This time around we skipped the decline phase and just rallied right away instead. Indeed that is the right response to terrorism as well.

The march of freedom always wins in the end. The history books are full of that proof. Unfortunately there are a few chapters where that view gets dimmed for a spell. Just keep reading and investing with foreknowledge that there will be a just and happy ending.



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