How Will Osama Bin Laden’s Death Affect Markets?


osama bin laden

This is a special edition post for Free Money Wisdom.  I typically post every other day, but Osama Bin Laden has been killed by the US military.  This is great news and provides this country with closure after nine long years of battle in the Middle East. Osama Bin Laden has been killed near Isalamabad, Pakistan.  It looks like justice has prevailed, took long enough!  However, I do want to note that this is no time to gloat over his death.  Although he was a murderer, killing hundreds of innocent Americans, it is not Biblical to rejoice for your enemy’s death : “Proverbs 24:17 Do not gloat when your enemies fall; when they stumble, do not let your heart rejoice.”

This is a personal finance blog, so let’s dive into the  repercussions  of Osama’s death. The news is pretty clear.  Stocks will be in the green tomorrow.  This is great for most investors.  However, if you bought into the gold and silver rush, this might be the pullback that I’ve been waiting for.  Already, there is early trading going on and it  does not  look good for the commodities markets.

The news of Osama Bin Laden’s death is positive news for the equities markets.  It’s been a nine year battle over in Afghanistan and Iraq.  And now that Osama Bin Laden is dead, this brings much needed closure to this great country we call the United States.  This “close” equals positive gains in stocks tomorrow.

Osama Bin Laden’s death equates to a lower national security risk.  If it’s actually safer in the world, who knows, but the markets will be having a nice rebound in the morning. Most likely, bonds markets and treasuries will have some sort of a pullback.

Three commodities to watch in the morning include oil, gold and silver.  These three have been going on a steady incline, but I predict that these will fall dramatically tomorrow.  It will be a great buying opportunity for anyone wanting to get into commodities.  I know that I’ve been waiting for a silver pull back for some time now.  I’m excited to see what happens.

There there are other markets like defense companies such as Raytheon and Boeing. These should be watched closely, as they could swing in either direction by dramatic amounts, just hard to say at this point.

Basically, this will be a short term gain for the equity markets while the commodities markets will take a massive blow.

I’m afraid that Osama Bin Laden’s death will cause uprising in the coming months and even more terrorist attacks.  I’m praying hard that’s not the case.  Either way, God is sovereign and everything is happeneing according to his divine plan.  Invest wisely fellow Free Money Wisdom readers!


So what do you think?  What is your investment strategy for tomorrow?  Comment below.