This is a special edition post for Free Money Wisdom. I typically post every other day, but Osama Bin Laden has been killed by the US military. This is great news and provides this country with closure after nine long years of battle in the Middle East. Osama Bin Laden has been killed near Isalamabad, Pakistan. It looks like justice has prevailed, took long enough! However, I do want to note that this is no time to gloat over his death. Although he was a murderer, killing hundreds of innocent Americans, it is not Biblical to rejoice for your enemy’s death : “Proverbs 24:17 Do not gloat when your enemies fall; when they stumble, do not let your heart rejoice.”
This is a personal finance blog, so let’s dive into the repercussions of Osama’s death. The news is pretty clear. Stocks will be in the green tomorrow. This is great for most investors. However, if you bought into the gold and silver rush, this might be the pullback that I’ve been waiting for. Already, there is early trading going on and it does not look good for the commodities markets.
The news of Osama Bin Laden’s death is positive news for the equities markets. It’s been a nine year battle over in Afghanistan and Iraq. And now that Osama Bin Laden is dead, this brings much needed closure to this great country we call the United States. This “close” equals positive gains in stocks tomorrow.
Osama Bin Laden’s death equates to a lower national security risk. If it’s actually safer in the world, who knows, but the markets will be having a nice rebound in the morning. Most likely, bonds markets and treasuries will have some sort of a pullback.
Three commodities to watch in the morning include oil, gold and silver. These three have been going on a steady incline, but I predict that these will fall dramatically tomorrow. It will be a great buying opportunity for anyone wanting to get into commodities. I know that I’ve been waiting for a silver pull back for some time now. I’m excited to see what happens.
There there are other markets like defense companies such as Raytheon and Boeing. These should be watched closely, as they could swing in either direction by dramatic amounts, just hard to say at this point.
Basically, this will be a short term gain for the equity markets while the commodities markets will take a massive blow.
I’m afraid that Osama Bin Laden’s death will cause uprising in the coming months and even more terrorist attacks. I’m praying hard that’s not the case. Either way, God is sovereign and everything is happeneing according to his divine plan. Invest wisely fellow Free Money Wisdom readers!
So what do you think? What is your investment strategy for tomorrow? Comment below.
I would advise to make clear that the temporary gains from Osama’s death are not what investors should be weary of. Day-to-day market changes are unimportant; rather it is the long term trend that investors should follow. Will Osama’s death affect the long term trend? Yes. But how? I would argue that it is extremely speculative at this point to attempt to call it one way or the other. On one hand, this could be a sort of call-to-arms for Islamic extremist cells operating around the world and we may see terrorist attacks rise at an unprecedented pace….on the other hand, we may have cut the head off of the snake, decreasing volatility in the M.E and around the world. Obviously, depending future events we may see the market turn either direction. Undoubtedly, this is a great victory for America. In the short term, as Jon said, commodities may fall, especially oil, but this will be short lived. I would assume that any losses from this news are made up over the next week or two at most. Again, be weary of the long term trends. There is still uncertainty in many M.E countries; Osama had no direct effect on oil either so it’s pullback is sheerly speculative at this point. Osama’s death may be the catalyst for increased attacks, but we will (unfortunately) have to wait and see. Don’t sell your silver, gold or oil. Use this dip opportunity to buy. Silver and gold will be nearly unphased by this. Oil may have larger implications, but over the long haul, again, will not decrease JUST from this event. Keep your eyes peeled, your ears tuned and stay frosty.
While it may not be biblical to rejoice in an enemy’s death, it also should be said that hearing many millions of people rejoicing today also should not be surprising:
When the righteous prosper, the city rejoices; when the wicked perish, there are shouts of joy. Proverbs 11:10
with that said I’m sure that we’ll see some short term fluctuations in the price of commodoties with downward swings, as well as an increase in the stock markets. We’ll see if it means anything more than a short term bump however.
Yah looks like a short term fluctuation. Silver and gold are both still on the pullback! I’m tossing some money into silver personally. I believe it’s valued at $200/oz so $28 is super duper cheap
What about you Peter, are picking up any commodities during this pullback?
My point is that this is a buying opportunity, especially for people like me. When i see a pullback, i want to buy. but you are correct. Long term investors can ignore this news but it’s simply an opportunity to get some cheap commodities. SILVER is king and will go to $150/oz within a year. buy buy buy!
Ya, I’d say if it stays on track it is at least going to 100. Im VERY interested to see what happens in June when QE2 ends!