Financial Tips: Investing during an Intifada

Almost two weeks before Islamic youths rioted throughout France, I came across this article - “Islamic extremism hikes France investment risk.”

Now two weeks have passed and “the spread of social unrest in France is undermining investor confidence in the euro and raising fears of an interest rate hike in the euro zone” as the euro falls to a “two-year low against the dollar.”

The euro is going down as many suburbs in Europe go up in flames.

ITV reports:

BAA, the company that operates seven major UK airports, has pinpointed the "lingering effects" of the London bombings as a major reason for a weakening demand for flights.

Many countries have issued travel warnings to their citizens against traveling to France. They include the United States, Japan, Australia, Britain, Germany and Russia. France's tourism industry will most likely suffer setbacks as travelers opt for elsewhere. This article on France tourism also includes an important quote from a traveler on "This isn't a French problem. It can spread through Europe if it keeps going. One spark across the border to Germany or Italy or Belgium, and it can go like wildfire."

And tonight, Jordan's tourism is likely to take a blow from bomb blasts ripping through three five-star hotels in central Amman - the Radisson SAS, the Grand Hyatt and the Days Inn. What "sets this series of attacks apart from others is that it is apparently the first attack in Jordan by suicide bombers."

Will investors now factor in a potential "Generation Jihad" when making financial decisions?

Posted by Mike Tate at November 9, 2005 10:04 PM