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Strategies & Market Trends : LastShadow's Position Trading

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To: John J H Kim who wrote (43030)3/15/2004 12:34:52 PM
From: John J H Kim  Read Replies (1) of 43080
 
This commentator on theStreet pretty much say exactly what I was thinking yesterday as saw the news of the Spanish elections.

"To me, the real significance of the Spanish election is that it shows al Qaeda that terrorism can work. To some degree, they were able to sway some of the Spanish electorate with the idea that the Popular Party had endangered Spain by siding with the US in Iraq. Because of this, al Qaeda will be emboldened to try to hit other loosely guarded targets related to those who support the US against al Qaeda.

It also means that other governments will think twice about aiding the US in anti-terror efforts in any way that is too high profile. First, it can make your country a target. Second, it can erode your political base.

Markets don't like uncertainty, so any increase in terror will be bad for risky assets like equities, and good for safe assets like Treasury bonds. "
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