We watched news coverage of the terrorist attacks in Paris with a mixture of horror and dread. The horror was our usual response to terrorism, the feeling that arises when we ask ourselves: how can people think this way? And when we realize that, somehow, there ARE people who think that way, the realization triggers deep emotions.

The dread, of course, comes from the realization that these attacks could have, and might still, happen here—that is, wherever we happen to be sitting, whatever concert venue or restaurant we might be planning to visit.

The outrage that is part of these emotions helps illustrate something that is seldom realized about terrorism. In a recently published book entitled The Better Angels of Our Nature, author Steven Pinker points out that terrorism is far from a new phenomenon. The book lists many instances of terrorist organizations through the centuries, from Roman times to the present day. But all of them prove a point: eventually, each of these groups will go too far, provoke the consciousness of the general public in the wrong way, and turn sympathy to their cause into outrage. Pinker cites statistics that show that virtually zero terrorist organizations ever accomplish their aims, and they tend to die out after their most visible credibility-destroying “success.” One has only to think of the fate of Al Qaeda after 9/11 as an example of a terrorist organization whose relevance declined to near zero in the messy aftermath.

In the more narrow world of finance, the world’s investment markets are likely to experience continued volatility, as the horror of the events in Paris are translated into uncertainty about the world we live in—and, therefore, the safety of our assets, reflected in our stocks. The markets typically respond reflexively and negatively to threats to our safety.

As the year proceeds through its last few weeks, however, we believe the smart money will tell us what it almost always does: that these downturns are temporary. Fears that global enterprises are somehow worth less will prove to be overblown. More importantly, after the events in Paris, the object of our horror and fear—the terrorist organization known as ISIS—is about to confront an opponent more powerful than its leaders have the ability to imagine: the resolve of the Western nations. At the same time, it will have to endure the disgust and repudiation of moderate members of the Muslim faith, in the Middle East and elsewhere.

The world changed over the weekend, but not in a way that affects the fundamental value of your investments. The change will be felt most powerfully in the failed dreams of a caliphate whose leaders have made a grave and awful miscalculation, and who are destined to pay dearly for their malicious stupidity.

The information presented above reflects the opinions of GW & Wade, LLC on November 16, 2015 and is subject to change at any time based on market or other conditions. GW & Wade disclaims any responsibility to update such views. The information is general in nature and is not intended to represent specific investment or professional advice. No client or prospective client should assume that the above information serves as the receipt of, or a substitute for, personalized individual advice from GW & Wade, LLC, which can only be provided through a formal advisory relationship. Please see the “Contact Us” section of our website, www.gwwade.com, for information on contacting GW & Wade.