Paris Terrorism Will Not Derail Stocks
The Terrorism Events in Paris Will Not Derail Global Stock Markets
Nothing in this article is meant to sound harsh or insensitive, and compared to the real value in life, any impacts on the stock market are completely trivial. We keep that at the forefront of our thoughts, as we provide guidance about what to expect from investments.
We rarely like to agree with experts from the mass-media, but we do agree with the commonly-held opinions right now. Specifically, that the Paris terror attacks will not derail the markets.
Like horrific gun violence and mass shooting acts across America, the public become numb to each subsequent event, as completely unbelievable as that sounds. People almost resign themselves to believe that it is just the norm, whether or not they should.
The same shift is being seen in relation to the effects of terrorism on the stock markets. Without the previous years of numerous horrific incidents, the impact on stocks from the recent tragedy in France would have been much more pronounced.
For example, the downing of the the Russian airliner over the Sinai had a greater shock value and had a negative market impact. The stock market has unfortunately priced in the next event already, almost in expectation, that this war is closer to the beginning than the end.
This is not to say the markets will not trade lower, but that shares may have fallen even without the Paris terrorist attacks. And there will be and should be some investors selling in direct response to the attacks, but we believe this will be short-lived and pass quickly.
Regardless, each and every dip in broad-based shares will have the media explaining that it is because of the events from Friday. This is what the media does - they explain every market move by pointing to the biggest story, which may or may not have anything to do with it.
That is why the markets could trade higher or lower, and the headlines will either be, "Paris Attacks Derail Stocks," or "Investors Not Deterred by Paris Attacks." Now take another look at the title of this article - there was nothing coincidental that it was named, "Paris Terrorism Will Not Derail Stocks."
The media gets a poor grade from the perspective mentioned above, however, they actually (inadvertently) stoke the flames of terrorism, and mass shooting for that matter. The last thing they should do is immortalize the perpetrators, or tell the world every detail about them.
For example, the mastermind behind the terrorist attacks (who will purposely not be named here) has now become an overnight celebrity among ISIS circles. His influence has multiplied, and there are thousands of like-minded followers who will now aspire to gain his "success," and/or are more likely to follows orders passed down from him.
The popular book The Gift of Fear (which I admit I have not read) explains that some mass murderers and gunmen would have less incentive, if it were not for the fact that they know CNN and FOX will detail every aspect of their lives (assuming whatever horrible event they perpetrate is shocking enough to stand out). While an event should be discussed in the public eye, a complete black-out of the individual should be conducted by mass media.
To take this concept one step further, as is done in the book, the killer(s) should only be described negatively. Loners, losers, and liars.