The explosions at the Boston Marathon that killed three people and injured more than a hundred others are certain to test whether events outside the immediate economy can destabilize the stock market and financial system. The catastrophe in Boston, which has been described as the most violent terrorist incident since 9/11, may be an isolated one. However, investigators have not said otherwise, and they may not know now.
Source: Thinkstock
The tragedy is a reminder that any number of things could cause a sharp sell-off in stocks, and most of them are not domestic. North Korea has to be first on the list. A missile launch toward South Korea or Japan might result in a military conflict, and the markets certainly would react badly to that. Tensions in the Middle East could cause a disruption in oil supplies or a military conflict, which, like Korea, would batter markets that are uncertain of the wider effects.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
