It is a good time to be investing. This data is by no means conclusive and the dates are subjective. However, the implication is that after an initial reaction to the tragic events, a recovery may be reasonably expected. Certainly this has been the mood of market with commentators noting the obvious market reaction to an event as catastrophic as this and the prospect for a re-evaluation after the initial shock has been absorbed. Before this catastrophe, the US Economy s future rested on whether layoffs would inhibit consumer spending, whether business investment would revive, and whether home construction and home prices would stay up.
All eyes are now on the American consumer and their reaction to events.
Whether a US-lead global slowdown which arguably was in play in any event is accelerated or not will become evident over the coming days and weeks as US consumers express their sentiment through spending and investing behaviour. The US Federal Reserve has said it would provide as much liquidity as the banks need and may lower interest rates if necessary. The European Central Bank said it also stood ready to provide liquidity to keep financial markets functioning. Japan s Ministry of Finance has advised that it stands ready to take appropriate foreign exchange action as necessary. No reasonable world leader wants to see this catastrophe escalate and are clearly prepared to act if necessary.