For those who cherish the virtues of life, liberty, and the pursuit of happiness, today is a grand day.
For those directly impacted by the terrorist attacks of 9-11-01, your day has come. Justice has been done. While the pain from the loss of your loved ones can never be eliminated, I hope the news of Osama Bin Laden’s death at the hands of our Navy Seals brings you a semblance of peace. You certainly deserve it.
Prior to commenting on what I believe the risks may be from Bin Laden’s death, let’s direct our thoughts, prayers, and praise to those who truly deserve it.
1. The aforementioned families who lost loved ones in New York, Washington, and Pennsylvania on 9-11. Let us never forget that you have paid the ultimate price and borne the indescribable pain.
2. Those in our military who have given their lives during the war on terror over the last ten years. Let us never forget these tens of thousands and their immediate and extended families.
3. The leaders of our nation, specifically President George W. Bush and President Barack Obama, who kept their eye on the target of pursuing justice for our citizens who lost their lives on 9-11. Let us also direct our gratitude to those allies who have truly stood by us throughout this ongoing battle.
4. Special praise is directed toward those involved in the mission that took place to bring justice where it was due. Our nation and the world is blessed to have people of this character and fortitude who are wiling to risk their own lives in our defense. God bless them!!
While we relish the news that justice has been done, this is certainly no time to declare victory and let our guard down. The risks of terror within our world remain ever present. Will they ever go away? As much as we may hope they would, I doubt it. The embodiment of evil can only be countered by the force and power of virtue. That force and power can not be a temporary phenomena but must be a central part of our national fabric. These forces must be displayed not only on the fields of battle but throughout our society, including our markets. Doing the right thing can not be subjugated to doing the profitable thing.
Please allow me to offer a few brief comments about what may be the economic and market impact from last night’s news. The knee jerk reaction to a force of good eliminating a power of evil is a natural sense of euphoria to be celebrated by a positive reaction in markets. We are witnessing that this morning. Beyond that, though, I believe the fact that the world once again and always looks to the United States to be the leader of the free world is a large plus for our US dollar.
The fact is many market participants have been utilizing the dollar as the funding vehicle to purchase a wide array of risk-based assets (stocks, commodities, higher yielding bonds). To the extent that our dollar finds near term support given America’s standing for freedom and pursuit of justice, the dollar may rebound and cause short term pullbacks in the aforementioned markets.
We shall see what happens in the markets but for now let’s focus on the far more important and dramatic event. I think it is safe to say that not since the passing of Adolf Hitler has the world wanted the death of a man as much as it wanted that fate for Osama Bin Laden.
Let freedom ring. Let us also remember that freedom is not free. Thank you to those in our military who pay that price every day. Let us especially remember the families of 9-11.
THIS IS YOUR DAY!!