Take low-risk approach in uncertainty

It is too early to understand fully all of the ramifications of the terrible events in New York and Washington. The attack has disrupted the financial system and the infrastructure of the US. This resulted in the Fed cutting interest rates by 0.5% before the re-opening of the US market. We believe further cuts of a similar magnitude will be forthcoming. Federal Aid of $40bn will be provided for infrastructure work and immediate security measures. Defence spending will rise providing stimulus for the economy (and defence stocks). In the longer term, these measures will raise con...