Commentary on Recent World Events
Posted 16 Nov 2015 by Rick Irwin, CFP, CLU
The incredibly tragic and senseless events in Paris and Beirut last week, like other similar moments in history, provide individuals with an opportunity to stop and evaluate a variety of their own personal circumstances. Ideally, with our sympathy for those directly and indirectly impacted by the events, we develop an even greater appreciation for the safety and freedom we are fortunate to have in our own country.
Inevitably, there are a variety of repercussions that follow such events. While a short-term sell-off is somewhat expected, a prolonged economic impact is not expected given the resiliency of European markets after similar events in the past. All markets remain open today and early signs show that the initial fallout from the recent attacks to be quite minimal. In fact, North American markets delivered strong gains today and European markets were mixed; down and up slightly depending on the region, much as they were in the aftermath of the London terrorist attack in July. Some sectors may be negatively affected, specifically trade and tourism as France has the largest number of tourists in the world, but overall it's not expected to have far reaching effects. (Source 1: Globe and Mail)
While the initial focus will no doubt be more toward the victims of this weekend’s events, I can appreciate that you may also be concerned on how your portfolio may be affected. As with any geopolitical event, effective diversification provides the best defense against market uncertainty – whether the resulting volatility is short-lived or drawn out. If you would like to discuss your current holdings, please feel free to contact me at any time.
 Christopher McCall et al, “Global markets brace for short-term hit after Paris attacks,” The Globe and Mail, http://www.theglobeandmail.com/report-on-business/international-business/global-markets-brace-for-short-term-hit-after-paris-attacks/article27264969/.