Q.(From many people) What should I do when the market re-opens? How should I respond to the terrorist crisis?

A. Predictably, some world markets were sharply lower in trading after the events witnessed on Tuesday. However, since that time, all markets have moved higher, currencies are stable and any panic has subsided.

When the US Equities market final does reopen on Monday, some selling should be expected. The days that have passed since the terrorist attack have already negated some of the expected selling pressure. Predicting where the markets will finish the session is pure speculation, but few experts are anticipating a historic sell off.

We have examined other surprise acts of aggression from the Lusitania to Oklahoma City and their effect on markets. In the majority of cases, the markets fell sharply only to soon rally in a major way.

We do not believe it is appropriate to abandon your long term investment strategy in response to what is likely a short term market event.