The economy is, by any measure, 10-15% more efficient after absorbing that shock, and corporate profits are up a cool $500b (70%) since 9/11—an amount equal 4-times Iran’s entire GNP, or the entire GNP of India (with 1 billion people):
And how is the S&P faring on the 5-year anniversary, after corporate earnings have grown a compounded 10% per year since? It’s up a whopping 17%. The Dow is up 16%, the Nasdaq is up 23%. Only the NYSE is in the ballpark (so far) posting a 38% gain over that time.
Were it not for the 9/11 tragedy, what would the natural stance of the market really be?