Our thoughts are with the people of France and the friends and relatives of those who were victims of terrorism in Paris on Friday.
It is human behaviour to react and to over-react and while terrorism on this scale is abhorrent, we must all step back and allow ourselves to remain rational and keep our perspective.
Interestingly, financial markets appear, for the moment, to be behaving with less volatility than incidents in the past have suggested that they might.
Will there be economic repercussions on the back of the Paris attacks? Probably, however it is just one more level of uncertainty being added to the already high level of uncertainty that exists in the global economy at the moment.
Despite higher levels of employment and lower gas prices, US consumers are not spending significantly and there is a large question mark hanging over the upcoming holiday shopping season.
Japan has slipped into recession.
The politics of terrorism and the discussions surrounding the next steps will increase the amount of rhetoric and extreme positioning of politicians who wish to use it to their advantage and that will only serve to heighten tensions.
The "fear factor" may be enough to keep consumers closer to home and less comfortable about spending, preferring to put off major purchases until they feel more confident.
Will that enter into the US Federal Reserve's thought process?
Perhaps, and more uncertainty for investors, as we approach the Dec 16 Fed announcement.
Until now the Fed and governor's speeches have been preparing us for "lift-off" and for the moment, we will have to continue to expect that the Fed intends to raise rates by 1/4%, although that may change as circumstances change.
Best to not make any crucial decisions until we are able to get a clearer picture.
Tomorrow is webinar Tuesday at
We will post the recorded version on our website at or about 5pm.
Feel free to tune in. If you have any questions you might like us to address:
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist