Terrorist Attack Effects on the Stock Market
We all know uncertainties contribute to market declines. I stated as much in my post about Islamic terrorists on June 22. That got me thinking. Do individual terrorist events cause market problems? To find out, I looked at some major terrorist attacks around the world, starting with the Munich Olympic attack in 1972 and how they affected the Dow Jones Industrial Average. I looked at the market the day before the attack, and then at 1 week, 2 weeks and 1 year after. I didn't take into account any other world events or economic conditions. The conclusion from this admittedly cursory analysis? With the exception of the September 11th attack on the Pentagon and the World Trade center, each caused a minor or no effect on the DJIA. Sometimes the market even rose. So take that, you terrorist bastards!
See the results here – Terrorist Attack Effects on the Stock Market.
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