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Raise a Toast to 3 Defense Stocks as a Tribute to 9/11

“Freedom itself was attacked this morning by a faceless coward and freedom will be defended... We will not tire, we will not falter, and we will not fail.”George W. Bush, 09.11.2001

These words truly echo the sentiments of the U.S. citizens as we mark the 15th year of the dreadful 9/11 terror attacks that reshaped the geopolitical equations of the country. The indomitable American spirit and sheer resilience is clearly visible in one of the most remarkable turnarounds in the history thereafter, as the country shook off its angst and turned the tables by unceremoniously ending the life of the alleged terror mastermind.

Since then, terrorism has changed hands to the more radical extremist group in the form of the IS. However, the “Never Say Die” attitude is perhaps one of the fundamental reasons why the country has been able to rise against adversities, time and again. As a case in point, let us look at what happened to the U.S. equity market, following 9/11.

The Stock Market Reaction

After the news of the terrorist attacks spread like wildfire, the NYSE and NASDAQ remained closed from Sep 11 to Sep 17 as administrators feared market chaos, panic selling and further loss of human and financial capital. In addition, as the World Trade Centers housed several trading, brokerage and other financial firms, it became virtually impossible for the stock markets to function as normal trading bourses.

Reacting to the severity of the situation, the market fell 684 points – a massive 7.1% decline in a single trading day, on the first day of NYSE trading after it reopened. The Dow Jones was almost down 1,370 points for a loss of over 14% for the entire week. The benchmark S&P 500 index lost 11.6% in the week and an estimated $1.4 trillion in value was lost in those five days of trading.

Down but Not Out

Despite the mayhem, investors gradually regained their composure and began to actively trade. Consequently, it took just one...