I gave my thoughts to Kyle Woodley for a piece he wrote for US News and World Reports: 5 Ways Terrorism Affects Your Portfolio. Here is an excerpt:
Terrorist attacks like the one in Brussels leave too much in their wake – fatalities and injuries, destruction, fear among the populace and many unanswered questions.
But one thing they rarely seem to leave anymore is a lasting effect on stocks.
“Most terror attacks – and particularly those on foreign soil – have only a passing effect on the markets,” says Charles Sizemore, a portfolio manager on Covestor and chief investment officer at Sizemore Capital Management, a registered investment advisor in Dallas. “Most U.S. investors are barely aware that anything happened, and economic effects here tend to be negligible.
“While terrorism is devastating to the people that experience it firsthand, it’s exceptionally rare for an attack to have a big enough impact on investor sentiment or economic activity to really change a market’s trend,” he says.
You can read the full article here.