Read Richard M. Salsman's excellent article, Spring-loaded market. Here is a quote:
"Market-makers are not stupid; they know a policy of appeasement when they see it. And they know history, too; they know that appeasement of evil only brings more evil -- and in more virulent forms. In the past year market-makers have seen that the United States and the UN are not serious about fighting terrorism -- that both sponsor terror regimes and condemn Israel whenever it properly and forthrightly fights terror."