[ALawPoker]

Wait, you assume 9/11 was a terrorist attack? Obviously the buildings were struck down by lasers.


JK, yes that more or less makes sense. But I don't think it's quite as simplistic as the way you present it. If there were another attack of a 9/11 scale, not to downplay how bad that'd be, but the market effects will be less and less for every subsequent attack. The reason the market dips is mostly panic, and not anything innate to the actual value of the stocks (as you seem to understand). So keep in mind the "fear factor" will not always be quite what it was on Sept. 11 as people become more conditioned to it (assuming that continuing attacks are inevitable, as in your OP).

And I'm not sure exactly what you mean by "keeping cash in reserve." If you mean just sitting in a savings account, then I really doubt the equity you'd give up by not having that money in the market would be worth the gain you'd make.

Any time a stock artificially loses value is usually a good time to invest in it. So I agree that the time following a major terrorist attack is probably one of these times. But the logistics of planning for it just don't really add up, imo. If you happen to have money lying around, sure throw it in. But I wouldn't lock up any funds for the sole purpose of waiting for this opportunity.