Tuesday, August 21, 2007

Terrorism and Investing

Here's an interesting article on How Does Terrorism Affect Your Trading.

The focus is on trading of stocks and currencies, which is certainly not my focus, but it's still an interesting read.

And although I don't see a mention of income investing itself, it does discuss long term investing strategies in relation to terrorism attacks. I'd say this - if you're investing for income, you're most likely banking on common human needs and desires. Coca-Cola, not software. Snack food, not biotechnology. Electric lights, not GPS satellites.

Terrorist attacks can certainly harm economies -- as September 11 did to the United States -- but as long as we're alive, we're going to keep on consuming basic commodities. Following September 11, business in the U.S. slowed dramatically -- car sales, restaurant sales and so on. Yet people kept using electric current to watch the news on TV and to eat Hershey's chocolate to deal with the stress.



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do u know about mumbai terror?
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