Today’s column is a reminder of the resilience of people and economies when confronted with catastrophic events.

Traditionally, November is a time for remembrance of those gone before us, particularly those brave men and women in the world wars who fought the good fight to preserve our democratic way of life. We are so grateful for their sacrifices.

Back then, severe danger was quite clearly defined by enemies whose evil intent was to dominate civilisation. The call-to-arms united individuals, whole communities, countries and economies in one concerted cause — to defeat these common enemies.

But what happened afterwards to those economies and their role in international finance? What was the effect on stock markets — considered a leading indicator of a county’s economic growth? Severe trauma, tragedy, grief and decimating population losses were followed over time by resilience, of individuals, businesses and governments and their collective determination to rebuild. Here we see a few examples:

One hundred years ago, at the outset of the First World War, the war to end all wars, European stock markets closed, followed by London and New York. However, stocks continued to be traded off exchanges. In less than five months, the New York, London and some European exchanges reopened for business.

Then, during the Second World War, the New York and London stock exchanges were open for almost the entire campaign. The New York exchange closed only on August 15 and 16, 1945, in recognition of victory at the end of the war.

More than 5,000 days have elapsed since the September 11, 2001 terrorist attacks. That was the day that the almighty United States’ economic engine stopped in its tracks. In the aftermath, the world held its breath. No one really knew what would happen. Less than a week later, the New York Stock Exchange and capital markets, still grieving but with the support of its global trading partners, reopened.

It has been two weeks since the deadly terrorist assaults in Paris killed 130 people, and injured hundreds more. Our hearts go out to people of Paris.

Through the internet and global media, the devastation and tragic losses in France were communicated almost instantaneously to the world.

This time, global capital markets’ reactions to this egregious carnage was muted. Generally, stock markets were described as “calm and resilient” after just a few days. Some may feel that this is an indication that free societies are becoming desensitised, because random violence is no longer abnormal but is the new normal.

Personally, I think just the opposite. The message conveyed by the almost business-as-usual capital market activity is that the free world will not become victims, nor cowed by attacks on their democratic principles and way of life. Instead, individuals, communities, businesses, governments, and markets came together in co-operation, demonstrating tremendous resilience, and determination never to enable evil to triumph.

The succinct words of the English seem so appropriate. Everyone, in spite of such tragedies, will just continue “to carry on.”

We learn of these tragedies residing in our relatively safe Bermuda environment. We feel gratitude (and some guilt) that it was not us or our family.

We are after all alive, but we can feel so powerless in the grand scheme of things. These random acts of violence are beyond our control. However, we can make changes in our lives that will have a positive effect on our family and community.

Where do you start?

Communicate! Get your life in order by planning for what you can control. We can take our own responsible actions to prepare ourselves as best we can for any life event: spiritual, emotional, physical, political, financial and familial.

• Know where you are, spiritually. Reliance on the power of a higher being is of enormous comfort in times of great stress and grief.

• Define what is really important to you by revamping your thinking. What do you care about the most? What would your priorities be if you had only a few days or months to live?

• Take better care of yourself. Walk, meditate, consume in moderation, avoid negative people and thoughts, convey the truth in all things you do.

• Be an agent of change for your family. Complaining, avoiding issues and decisions, accepting information without independently verifying the sources, and the like gain no ground. Become your own research team. Learn everything you can about your economic community and political environment.

• Review your own finances and then offer to review your extended family’s financial contingency preparations. Is it adequate? You would be amazed (or maybe you wouldn’t) at the number of couples and families who do not discuss money. They have no idea what each person earns or what each owes (very dangerous). They have little understanding of a team concept or inclination to set family goals.

How can they even begin to set up a contingency plan — that is a written plan of action kept on file, to be taken out and used when financial situations dramatically change. It may never be used, but it is there if you need it.

When you know the worst thing that can happen, and how to handle it, you can make logical appropriate decisions, not emotional ones.

It is our collective responsibility to rise to the challenge of helping ourselves by helping our immediate community remain financially stable.

This means the process starts with you. You take on the role and you become their cheerleader.

Sources:

Desperate Traders Managed To Keep Trading During The World War I Stock Market Shutdown, April 1, 2014, Bryan Taylor, Global Financial Data

Link: http://www.businessinsider.com/world-war-i-impact-on-markets-2014-8

Martha Harris Myron CPA PFS JSM, Masters of Law: International Tax and Financial Services. Appointed to the Professional Tax Advisory Council, American Citizens Abroad, https://americansabroad.org/. The Pondstraddler* Life™ Consultancy providing financial planning, publications, presentations for Bermuda residents, their multinational families and connections. Contact: martha@pondstraddler.com