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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (28549)2/8/2003 11:57:42 PM
From: energyplay   of 74559
 
Tippet and Jay - AA1) Folks beleive terrorist attacks on U.S. and Western Europe will cause stocks to drop sharply.

Risk of any specific stock = Systemic risk + individual stock risk.

Systemic risk is up. Nothing wrong with the stocks, but now worth less money as total risk is higher. Note that in years after end of Soviet Union, overall risk dropped, and this was cited as one reason for rise in stocks.
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