First, may those who perished in the recent terrorist attacks rest in peace. Terrorism is 100% unjustifiable and violence is never the answer. Unfortunately, we live in an age where terrorist attacks could, sadly, become all the more common. It is becoming easier to acquire means to make bombs, recruit terrorists, acquire weapons and training, and everything else.
When it comes to investing and managing your wealth you have to keep a constant eye on global conditions. This is true not just of economic news, but also terrorism, war, weather patterns, and numerous other factors. These factors can actually have a big impact on your personal wealth. That’s why we’re going to go over some ways in which terrorism can have an impact on your wealth.
1. Terrorism can impact markets
This time around, the terrorist attack didn’t have a big impact on markets, at least not immediately. However, following other acts of terrorism, markets have been hit hard. Usually, stock markets and other financial markets will quickly recover, but it’s something to keep an eye on.
Generally speaking, if markets are suffering a downturn due to a terrorist attack, it’s best to wait until markets recover before you sell your assets. Of course, there are many exceptions so make sure you talk to your wealth manager, especially if there is a terrorist attack.
2. Terrorism results in increased government oversight
Government oversight isn’t bad, especially when it is done in moderation. However, when government regulations and rules become too complex and too widespread, it can become cumbersome. For wealth managers and investors, this can create numerous headaches. It can be more difficult to maintain privacy, and even conduct simple actions, like making an investment.
As a result of terrorist attacks, governments are increasingly snooping through emails, following money flows, looking at investments, and various other things. Terrorism and terrorist attacks only increase the drive for governments to snoop about. Don’t be surprised if the recent terrorism attacks result in new government rules and regulations in the near future.
3. Finance and money can come under special scrutiny
We’ve already mentioned this a bit, but let’s jump into more detail. Terrorists need money. Carrying out terrorist attacks is not exactly free. Buying weapons, transportation costs, paying wages, there are various costs associated with terrorism. Yes, even terrorists need money.
Governments have been cracking down on financial laws and international money flows as a result of terrorist attacks. Money heading or coming from abroad is facing especially tight scrutiny. So too are offshoring havens like Malta and Cyprus. While many business people are using these locales legally and ethically, terrorists have been trying to use them to conduct terrorist attacks.