fisher capital management strategies: Morning after bin Laden dies, patriotism fuels economy

The killing of Osama bin Laden gave New Jersey’s economy an emotion-fueled boost Monday morning. But consumers and investors turned their attention to jobs, gasoline prices and inflation by Monday afternoon.

Myla Williamson gave a typical sober response when she said she was pleased to see the nation’s most wanted terrorist brought to justice. But for her, at least, the day was no different.

“I can’t spend what I don’t have,” said Williamson, 44, of Ocean Grove. “I’m trying to get out of debt.”

Bin Laden was killed Sunday in a U.S. operation that offered a chance for closure, particularly to Central Jersey residents who lost family, friends and co-workers in al-Qaida’s Sept. 11, 2001, plots.

It set off celebrations in New York and Washington, D.C. And it could in the long-term help to bring stability to the Middle East. But euphoria can only carry you so far, experts said.

“Does it make people feel better? Yes. And anything that makes people feel better and raises confidence is a boost,” said Joel Naroff, an economist based in Holland, Pa. “But ultimately it comes down to people’s pocketbooks.”

Some stores found themselves with a bigger advantage than others. Kempton Flags in Wall, for example, sold more American flags on Monday, including many to parents whose children are in the military, co-owner Shawn Kempton said.

But initial giddiness gave way to reality within just a few hours. For example:

The Dow Jones industrial average opened higher on Monday, but gave back its gains in the afternoon to close virtually unchanged. It closed at 12,807.36, down $3.18, or 0.02 percent, at 4 p.m. Monday.Investors were more concerned about the federal government’s debt ceiling, the aftermath of Japan’s earthquake and upheaval in the Middle East, said Doug Lyons of Trident Wealth Advisors in Bay Head.”There are more structural issues that would impact” the stock market, he said.