Bhutto’s Assassination Reminder of Global Instability – Investors turn to Gold AS Safe Haven

Killing of Bhutto Adds to Worries in Markets

by Robert Gavin, December 28, 2007

The assassination of Pakistani opposition leader Benazir Bhutto is adding to recession jitters already shaking investors in global financial and commodity markets.

With the US economy viewed as dangerously close to recession, many analysts say any new shocks, such as another surge in energy prices, could tip it over the edge.

Bhutto’s killing in Pakistan yesterday is another reminder of global instability helping to send fuel prices higher and stocks sharply lower.

“People want to believe the economy is going to be OK,” said Nigel Gault, US economist at Global Insight, a Waltham forecasting firm. “But any hint of bad news, and fear takes over very quickly.”

The Dow Jones industrial average plunged nearly 200 points, or 1.4 percent, following Bhutto’s death. Meanwhile, investors flocked to safe havens such as gold and government bonds.