Category Archives: War, Terrorism & Ugliness
I’m typing with a heavy hand and an equally heavy heart following the horrendous events in Las Vegas earlier this week. It’s a city I know well and have enjoyed tremendously over the years.
As with any act of violence no matter where in the world it happens, it’s difficult to imagine how a nation, and so many people who have had their lives tragically shattered, will bounce back.
Many investors are wondering why the financial markets didn’t come unglued when news of the shooting broke.
In years past, they would have gone straight down or at least stopped in their tracks. Yet, incredibly, the opposite is happening.
The markets powered up Monday, then again Tuesday, to notch a new five-day winning streak at record highs. And, they’re up again in early trading Wednesday morning as I write.
There’s actually a very good reason, albeit one that’s completely counterintuitive.
In the years since 9/11, traders have learned to distinguish between two types of events:
- highly localized events that make international news, and;
- localized events that are global news.
Today’s financial markets are truly global, which means that they are increasingly impervious to highly localized trauma, regardless of why it occurs or even who causes it.
North Korean strongman Kim Jong-un did the unthinkable and launched a missile over Japan yesterday.
Tens of thousands of cell phones went off at once at 6:02 a.m. when that nation’s government alerted citizens to the launch.
NHK – the nation’s largest public broadcasting network – simultaneously flashed a “black screen” warning that the missile was approaching Japan and that everyone in its flight path should immediately take cover.
Air raid sirens blared in Sapporo on Hokkaido, Japan’s northernmost island.
People took cover.
Fourteen minutes later, things returned to “normal” when the missile fell into the Pacific.
But, what exactly does that mean… normal?
That’s hard to say.
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