A Sad Reality

Although the tragic loss of life in London is distressing, one lesson is that the financial markets can withstand such a shock. European stock markets all closed with losses of less than 2 percent on July 7, and U.S. stocks rose. It may be that the world has now become so accustomed to random violence on a mass scale that, after an initial knee-jerk reaction, markets go back to what passes for normal.

Aug 01, 2005

“Although the tragic loss of life in London is distressing, one lesson is that the financial markets can withstand such a shock. European stock markets all closed with losses of less than 2 percent on July 7, and U.S. stocks rose. It may be that the world has now become so accustomed to random violence on a mass scale that, after an initial knee-jerk reaction, markets go back to what passes for normal.”
— A market insight from Standard & Poor's e-mail newsletter The Outlook.

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