I think the 9-11 attack has triggered plunging velocity, throwing us deeply into the Japanese disease. See EWR Back Issues: September 2001, page 7; March 2001, pages 5 and 6; March 1999, pages 6 thru 8.
However, wars tend to be inflationary, so I think the government will inflate us out of the Japanese disease. This could be an opportunity to buy many investments at bargain prices.
Do your best to develop a long-term view. The war has only begun. If President Bush carries out his promises, it is likely to be a world war. (More on that in the October EWR, due to be mailed September 28.)
My guess right now is that we will have a spike downward in prices of almost everything. Then a roaring inflation, with nearly all prices rising strongly. A triple-digit inflation within two years is not out of the question.