Morning Report Tuesday 17 November 2015
Equity market rebound solidly after the Paris terrorist attacks
Due to the number of enquiries from subscribers over the last few days we’re focussing today’s report on the bigger picture looking at the overall structure of the market.Overview
Equity markets took the Paris terrorist attacks in their stride albeit with more of a positive result than even Market Matters anticipated with the Dow rallying over 230 points last night. As we illustrated yesterday, Markets are becoming smarter and knee-jerk reactions to left field events are diminishing.
History actually shows that there have been 25 terrorist attacks over the last 45 years and equity markets have taken just under 3 weeks to return to levels prior to the attacks, this time it looks to be under 24 hours! The lesson is simple; we have to remain focused on the bigger picture as short market movements are very hard to predict and basically random noise.
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