On behalf of the LPL Research team, our thoughts go out to the millions of people who will be impacted by Hurricane Florence.
We’ve had many requests this week to look at how equities do around major hurricanes and, using data from the National Hurricane Center, we found that markets generally appear to have taken the catastrophes in stride.
“As tragic as major hurricanes can be, they appear to have little immediate impact on equity prices,” according to Senior Market Strategist Ryan Detrick.
As our LPL Chart of the Day shows, after the 15 most costly hurricanes to hit the United States, the S&P 500 has been higher six months later 13 times. Additionally, the returns going out one to six months are quite strong as well.
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