Smithers & Co, which provides asset allocation advice to clients in the UK, US and Japan, says US sto...
The company says in a review of US markets that the events in New York and Washington are "primarily a human catastrophe rather than an economic disaster".
And although the insurance and airline industries will be hit hard, other sectors should emerge relatively unscathed.
The main problem is that US stocks are still overvalued by, in its opinion, some 40% as of 21 September.
Other technical data support the analysis, it adds, such as net selling during the second quarter by foreign investors in US stocks, increasing US household debt that is likely to cause further selling, and an increase of 8.5% in US corporate debt during the first six months of the year, with the resulting weaker balance sheets now being experienced.
Meanwhile immediate effects on the stock market could come from the reduced feeling of security both personal and job-wise in the US, where investors are likely to move towards increasing liquidity in their portfolios and households are likely to start saving more rather than spending more.
This could be staved off by further tax cuts, Smithers & Co says, but although it looks more likely now than two weeks ago that is still a political decision that must be made.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till