Paris Terror Attacks — November 13, 2015
Coordinated ISIS attacks kill 130 in Paris; markets unaffected
Coordinated ISIS attacks across Paris killed 130 people. The CAC 40 fell only 0.1% on Monday. The S&P 500 gained 1.5% on Monday, closing at 2,053.
What history says
Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.
The S&P 500 gained 1.5% on Monday November 16. The broader market treated the attacks as a non-event for US corporate earnings.
Unlike wars, recessions, or financial crises, terrorist attacks do not destroy productive capacity or impair the banking system.
Stated with the respect the tragedy commands, the process lesson is that markets price productive capacity, and terror attacks — however devastating in human terms — have not impaired it; US equities rose on the next session. Holding to a written allocation through such days is what separates a plan from a mood.