An investor forum - and being called a "War Counsel" - was held yesterday by the Bermuda Investment Advisory Services (BIAS).

During the lunchtime session - which was held by invitation, for BIAS clients - the firm's investment review and research team, including senior investment strategists, Robert Pires, Mark Melvin, Miguel DaPonte and Stuart Hrehoruk, spoke to the current climate of economic uncertainty, and how the financial market typically responds to geo-political traumas.

Mr. Pires opened the session, and said the firm sought to give "not only expert financial advice, but also, as much as possible, comfort and peace of mind".

Speaking of the firm's immediate "call to action," Mr. Pires said BIAS - the only local firm run by chartered financial analysts (CFA) - took an immediate and analytical look at events: "We went in to war counsel, up to three times a day, after the WTC tragedy, to discuss events and how we should respond," he said.

Of the market, Mr. Pires said the market was already in a down trend before September 11, and that it was expected to make a comeback. With the terrorist attacks, however, Mr. Pires said that put back the market's recovery.

Speaking of market trends, post September 11, Mr. Pires said there had been "a flight to safety; investors moved money out of equity markets after September 11."

After the attack, the firm said it set out to reach its clients - following an attack which struck at the core of the financial market. Mr. Pires said BIAS was successful in reaching about 80 percent of its clients. At that time, BIAS recommended its clients consider doing small liquidations - up to 20 percent of their mutual fund holdings - and to put that money to the side.

Mr. Pires cited this as a positive move both for "peace of mind," but also as there is the chance of reinvesting "down the road" at lower levels.

In the immediate wake of the September 11 tragedy, Mr. Pires said there was little activity from clients because "most [clients were floored by the actual events," he said.

But, thereafter a majority of BIAS clients followed the firm's advice, and did small liquidations. The peace of mind, for investors, Mr. Pires said comes from cash not being subject to the vagaries of the market. In terms of money still invested, yesterday's session gave some advice on how investors might turn the current situation in to an economic opportunity. Citing the maxim: "Where there is chaos, there is opportunity," and although saying investors should have a diversified portfolio, the BIAS team said there are good investments to be made, in the short-term.

The first on this list, according to BIAS, is health care. This sector was cited as being "recession proof" as people will always need prescriptions and medical care, and looking at demographics "we are all getting older".

BIAS said the health care market rebounded soon after the US attacks, and before other markets. Based on the example of its own portfolio, BIAS recommended its clients consider investing part of their portfolio in the world's largest pharmaceutical company, Pfizer, a company that has consistently beat earnings expectations, and has a patent until 2010 on the popular cholesterol reducing drug, Lipitor.

BIAS, also on the health care front, recommends Tenet Healthcare - the second largest hospital management company with a focus on investing in more profitable areas (cardiology and neurology), as well as consistently paying down debt - $2.2 billion over the past two years. BIAS also recommended Johnson & Johnson, the health care product manufacturer, with 68 years of consecutive sales increases - it is one of the few US companies to carry an AAA credit rating.

With the nature of the conflict, BIAS also cites defence stocks as a recommended investment, at least in the short term. Specifically, the company has bought Raytheon and Alliant Techsystems stock - best known as manufacturers of cruise missiles and missile propulsion systems and smart munitions, respectively.

With these defence stocks, BIAS has already seen a gain of up to eight percent.

Yesterday's session did more than give investment recommendations however, it also looked at the affects of war and political events - on the financial market - dating from the second world war, through the Cuban missile crisis, Kennedy's assassination, the Gulf crisis and to this latest conflict. By moving through previous political trauma, and the affect on the financial markets, Mark Melvin demonstrated that similar patterns emerge, and that these can be broken down in to four phases.

According to Mr. Melvin there are typically four phases, in conflicts. The first, he said, is the period of rising tensions - and it is during this time that financial markets tend to see a "flight to quality" - such as investing in the US treasury bonds - debt obligations of the US market, seen during times of uncertainty.

Phase two, Mr. Melvin said is the time of first action - and he said this is where we are now; having been thrown in to the conflict, without any period of mounting tension. This is, according to Mr. Melvin, the greatest period of uncertainty - and where the market can see "big volatility swings."

Phase three is the "Call to Arms;" a time when, Mr. Melvin said: "the markets tick up and also experience some drops."

But, lasting confidence in the market, has been shown throughout history, to return only when there is an end to the conflict or tension. And this is usually a high economic period; a "post-war boom."

The session also put some focus on this conflict's psychological element, which was said to be the "most profound aspect of this war."

Of investing, Mr. Pires said: "It is not a pure science, it deals with the collective emotions of investors around the world."

In conclusion, Mr. Pires said: "We cannot change the circumstances, but hopefully, we have provided some clarity," he said.

BIAS plans to continue with monthly, lunchtime investor forums, and said the response from yesterday's participants was positive.