Pay attention to any of the financial news shows, and you'll hear the talking heads discussing how current events have an impact on the stock market. From disasters, both natural and man-made, to decisions by the Fed to recent actions by the President, news events affect our investments. Or, to put it more accurately, investors' responses to these news events affect our investments. The emotional state of investors and the psychology of fear and risk-taking play into the ups and downs of the various markets.