Does Hurricane Affect The Stock Market? Not Typically Due To a Large Geographic Sphere Of The Stock Market
Does Hurricane affect the stock market? Generally speaking Hurricane’s do not affect the stock market just because the Geographic sphere of the stock market covers such a vast space, and because Hurricane’s are much more localized. If you think about it, say that a massive Hurricane is going to hit Florida or New Orleans Louisiana, while yes locally it may be absolutely catastrophic, say with Hurricane Irma, Andrew or Katrina, in local areas like Louisiana or Florida only. A bad storm typically does not directly affect the rest of the United States due to it being so local, however stock market analysts and even Geologists have researched for decades now the question of Does Weather Affect the Stock Market?
Generally the answer is going to be that no it does not. There is not specific or widespread knowledge that weather directly affects the stock market, either in the short term or the long term. If you see a stock market down turn during the day of a hurricane, or a tornado, or a bad snowstorm, it is typically due to other factors. It is much more a situation of Correlation does not equal Causation, in that it is being causes by other reasons than the weather in a localized area. But is there any research on weather affecting the stock market?
In this blog post we will look at different types of storms and how they may affect the stock market including:
And much more. Read on or subscribe to our blog for additional details and information!
Does Hurricane Affect the Stock Market? That Would Be a Generally Resounding NO
In retrospect, I do not see a hurricane really having an effect on the entire stock market. Even if something like a major Hurricane Katrina hits an area, it is so localized that there’s no way it really moves the stock market. The only measurable affect on the stock market is that those localized to the storm are not trading during that period of time, because the power is out and they cannot access their stocks. For instance I work in a Wealth Management office right now, and I’ll tell you that no one is going to be answering the phones and no one will have power if this thing comes on Thursday, hence no trading gets done in a certain segment of the population.
Statistics on How Weather Affects The Stock Market
There is no measured correlation between bad weather and the stock market.
Final Thoughts on Does Hurricane Affect The Stock Market? Here’s How Weather Can Impact Your Investment Returns In The Short Term and Long Term
And there you have it! I definitely would not try to trade the weather, you are better off trying to trade the January effect, the October effect, or even the Super Bowl Effect. But weather has such a nil correlation with the performance of the stock market that, as Kevin O’Leary might say, you need to take this one out in the barn and shoot it. Thanks for reading guys!
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