Below is an interesting video that sums up the effects of the recent terrorist attack in Russia. Terrorism definitely places a dent on any economy, but it also provides leverage for speculation. Entering at a dip in an existing strong economy can be a good thing for some businesses. Some speculators place bets on Russian security stocks. Others, like Dantes Outlook, keep an eye on violence, but see the long term conditions in Russia as stable - especially since the oil industry is booming.
Violent attacks cause everyone to raise a red flag about a country, but it also provides a window into the existing economic conditions of a particular country, which can unearth some investment opportunity. By now, the world is used to violent acts, but the opportunities are still unique. For example, the recent uproar of protests in North Africa, gives us more information about Egypt's unsustainable fiscal path - the shouts of protesters are well heard amongst global economists for sure. In light of this, there is new investment opportunity in South Sudan, even during some violent episodes. South Sudan's vegetation and oil fields provide untapped opportunity that can potentially yield greater returns to overpower economic affects of violence, which by now is a given. As always, the greatest potentials come with more risk.
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