no clear and fair income will happen terror's activity

Taipei Times - archives: "Firstly, the initial market impact from terror attacks is likely to be overdone and to unwind over subsequent days.

The reasons can be found in human nature — behavioral economists have shown that people tend to be naturally risk averse and prone to panic and a herd mentality in the face of uncertainty and danger. For bold investors, asset price weakness in the wake of militant attacks is a clear buying opportunity.

Second, once the initial panic eases, investors take a more rational look at the medium-term economic impact. The direct economic impact in terms of physical damage and loss of human capital is much less of an issue than the question of whether the attacks have spillover consequences that magnify their cost.

To give one extreme scenario, a militant attack that led to conflict between nuclear-armed India and Pakistan could have a devastating global effect far beyond the initial damage.

Thirdly, the micro impact of attacks can be more serious than the macro. While economies are resilient, sectors such as airlines, tourism and insurance are much more vulnerable."

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