The Economic Effects Of Terrorism

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Updated: 4/17/2013 11:13 pm

The stock market is back on the rise after a big drop following Monday’s Boston Marathon bombing.

It hasn’t completely recovered yet, but experts said the overall trend looks good.

Ken Troske, economics professor at the University of Kentucky, said it’s common for investors to begin selling shares during the “uncertainty” that follows a disaster or terror attack.

“Investors have an optimal amount of uncertainty that they’re comfortable with and as the amount of uncertainty changes, they may change their portfolio to better reflect the uncertainty that they see,” Troske said.

John Cullen, a Lexington investor, said he has been investing for 44 years and he believes it is important to remember that setbacks are usually temporary.

He said he has learned not to panic when he begins losing money.

“You don’t go home at the end of the first quarter. You don’t go home at the end of the second quarter. You ride it out until the game is over,” Cullen said.

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