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    Bulls & Bears

    This week's "Bulls & Bears": Gary B. Smith, columnist for RealMoney.com; Pat Dorsey, director of stock research at Morningstar.com; Tobin Smith, editor ChangeWave Investing; and Scott Bleier, president of HybridInvestors.com; Danielle Hughes, president and CEO of Divine Capital Markets; and retired U.S. Army Col. David Hunt, FOX News military analyst.

    Trading Pit: Stock Victory

    Last Thursday’s deadly and tragic terror attack in London did have an initial affect on the European markets, but came back to finish well off their lows on Thursday and Friday.

    Here in America, there was a huge stock surge; with the Dow gaining 300 points from it’s low on Thursday after the attack. This was a strong victory in the wake of terror.

    Tobin: The attacks in London last week was a horrible attempt to try to scare economies that won’t be scared. These terrorists are not going to get in our faces and change our economy. It’s not going to change us. It will just strengthen our resolve.

    Gary B: It’s kind of sad, but we’re starting to get used to these events occurring. If the terrorists really want to affect the markets, they will have to be on a whole new level. That’s what is scary.

    Col. Hunt: The British reacted extremely well. The markets are people. We are not going to be beaten. The problem is that the G8 Summit didn’t even have terrorism on the agenda. This attack put it back on the front burner and it needs to stay there. We have to stay strong, find these guys, and kill them.

    Pat: Attacks like this don’t affect large economies over the long term. And since it’s the economy that drives the market, these attacks don’t hurt as badly as the terrorists hope. However, in the short term, these attacks hurt the market because they are unexpected.

    Dani: We’re looking at this event in hindsight a little bit. We didn’t have to close down any markets. The British were resilient, but we can’t anticipate what terrorists will do in the future. The only thing we can do to protect ourselves is to back the markets up. The economy continues to be strong and that’s what the investors came back to see.

    Scott: The scope of 9/11 was quite unparallel. The surprise factor is over and we’re all used to this. What the market did on Thursday and Friday was the best and biggest short covering rally we’ve had all year.

    But would happen on Wall Street if our subways and buses were attacked?

    Dani: We went through that already. The market will tank, but we now have taken a lot of precautions.

    Gary B: It’s one thing for the U.S. markets to hold solid when it happened across the ocean. There would be a much different reaction if that attack had happened here.

    Tobin: I live in Washington, D.C. and New York City, and know one of these cities will get hit. But I think Americans have made a resolve not to let the terrorist win and won’t let another attack matter.

    Col. Hunt: We have done a great job of rebuilding after 9/11. But we are a vulnerable society. However, if something happens again, we will fight back even harder.

    Pat: The market would have a terrible sell-off in the short-term, but after a few weeks, the market will be back where it started.

    Scott: I don’t think we would get a gigantic sell-off. Certain segments of the market would go down sharply: hotels, casinos, airlines, etc. However, “nesting stocks”, like Internet stocks and shop-at-home stocks, would go straight up.