Sunday, May 01, 2011

Osama Bin Laden Dead and the US Stock Market Reaction on Monday

Osama bin Laden is DeadOsama bin Laden is dead.


Congratulations to the US troops in the field and to President Obama.

I expect the stock market reaction will be quite positive to this event. While we may face some reaction from the forces of terrorism, this is a major victory for the US and our allies and friends around the globe.

Maybe the reaction in the gold and silver market won't be as good. This could reduce the risk premium built up in the metals. But at the same time, it's not like the US fiscal policy is in order as the dollar could continue to decline in all the stimulus and easy Fed policies.

But for a moment, at least this evening, this isn't about stocks. This is about good winning over evil.

God bless America.


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