The stock market is pretty unpredictable, especially in the near-term.
As the U.S. east coast gets hit by the storm of the century, should investors expect stocks to tank?
If history's a guide, not necessarily.
"History says that hurricanes typically don't trigger market declines," notes S&P Capital IQ's Sam Stovall via USA Today.
In a new research note, Stovall looked at how stocks performed in the wake of the last 13 most disastrous hurricanes as measured by cost since 1965.
He found that the S&P 500 climbed an average 3.9 percent over the three months after the storm and 5.8 percent over the next six months.
"Equities are more likely driven by wider-reaching global events than localized natural disasters," he writes.
Indeed, after Hurricane Ike in August 2008, the S&P 500 tanked 30 percent in three months and 43 in six. Those sell-offs were certainly attributed to the bursting of the U.S. housing market and credit bubbles.
SEE ALSO: Wall Street Analyst Explains The 'Catastrophe Process' That's Unfolding In Front Of His Window >
Please follow Money Game on Twitter and Facebook.
Join the conversation about this story »
Source: http://feedproxy.google.com/~r/TheMoneyGame/~3/NNqp4sVAu70/stocks-after-hurricanes-2012-10
Personal Finance News & Advice Guide To Financial Fitness Money Game Tech Crunch
No comments:
Post a Comment