Why a would a terroist situation affect the stock market?
(I am watching a movie were John travolta hijacked a subway train and some how that means that the stock market will fluxuate.）
Answer：
If there is strife in the Middle East, it can disrupt supplies of oil. Oil prices rise. Stocks of oil companies (those that do not produce in the disrupted region) tend to benefit.
After 9/11, transportation stocks were hurt badly as travel was curtailed. Airline stocks went down the most, but cruise stocks like Carnival and Royal Caribbean also dropped. However, there were stocks that soared, especially stocks of companies in the security/safety/scanning areas.
Look at long term charts for ASEI and CAl back to 2001 for example.
Posted: July 29th, 2010 under US Stock Market.
Tags: Stock market, terroist situation affect, terroist situation affect the stock market