The Experts
| Lummer's Logic |
|
 |
 |
| Tragedy
|
|
By Scott Lummer
Chief Investment Officer, mPower |
Sept. 11, 2001
This is an investing site, and our
commentaries are about economic and financial events. Today such events seem trivial,
although it is my obligation to offer some perspective on investing, which I will do
below. Being in the financial business, many of us at mPower know people who work in the
World Trade Center. I have several friends, business associates and former coworkers who
work there. Our hearts go out to all of the victims of today's attacks and their families.
We urge everyone in America to provide whatever assistance they can. Specifically, if you
are able to donate blood, please do so.
Understandably, I have already
received questions about the potential impact on the financial markets. I will provide
more commentary in later days, when the shock of today's events has lessened. While it has
been a catastrophe of immense proportions, the effects that this country will experience
are mainly emotional and political, not economic. I realize that nearly every public
company will be affected, some severely (several companies had their headquarters in the
World Trade Center). But the stock market has survived multiple calamities, from
earthquakes to World Wars. It will survive this one. As far as what financial actions you
should take, I can only tell you what I am doing — nothing. I am not moving a penny
of funds. When the financial markets do reopen, there will be a lot of volatility. There
will also be a lot of pundits with alarmist suggestions. But don't confuse your emotional
reaction to the human tragedy with economic rationale. Today and the days to come are a
time for compassion and reflection, not for panic.
The discussion of financial markets is
necessary for our hundreds of thousands of clients. However, we provide such discussion
today without a loss of perspective on the larger picture. Today has deeply affected the
way many of us will live our lives, and none of us will ever forget Sept. 11, 2001. The
images coming from New York and Washington DC today are more shocking than any I have seen
— more so than Dallas in 1963, Cape Canaveral in 1986 or Oklahoma City in 1995. Words
cannot express the feelings of distress, helplessness and growing anger that today's
events provoke. But mostly, we feel compassion for those directly impacted. Our thoughts
and prayers go out to the families of those affected by the tragedies today.
 Lummer's Logic Archives
The information provided here is intended to help you understand the general issue and
does not constitute any tax, investment or legal advice. Consult your financial, tax or
legal advisor regarding your own unique situation and your company's benefits
representative for rules specific to your plan.
401Kafe.com is the
premier online community resource for 401(k) participants
Copyright ý 1996 - 2000 mPower. All Rights Reserved.
|
