Boston Marathon and the Dow collapse from a terrorist attack

Today, on Monday, April 15th, 2013, two explosive devices were set off at the Boston Marathon, killing at least two people and injuring over 100 more. In terms of morality and of finance, this was a horrible tragedy.

Remember that finance is often tied to the mood of the nation. There are "American" investments, "Chinese" investments, "Chilean" investments, etc. When a nation is attacked, people tend to instinctively flee and move their assets somewhere else. As a result, the Dow dropped 266 points today to a dismal 14,559.

Does a tragedy always mean "sell, sell sell?" Not necessarily; the terrorist attack on the 1996 Atlanta Olympics, for example, did not make the market flinch. Part of the selloff was certainly driven today by investors worried about economic slowdowns in the US as well as Europe's continued entanglements.

Let this be an example of the need to stay up-to-date on current events. If it floods in China, what will happen to investments dependent on rice? If a hurricane rips through half of the US, what companies will be most active in rebuilding homes (or themselves)? If you always take some time to review current events, you'll have that much of an edge over Wall Street.


(Paramedics rush the injured to hospitals as the marathon devolves into chaos)