Photo: wikipedia commons
Analysts are still trying to figure out the longer term implications of the destruction left by Hurricane Sandy.But relative to man-made disasters, it appears that natural disasters like Sandy aren’t as damaging to the stock market.
This is according to some stats compiled by Deutsche Bank’s David Bianco. From a recent note to clients:
Natural disasters are less market damaging than man-made disasters
Comparing market performance around five notable natural and man-made disasters shows that S&P 500 on average was down 1% one week before but up 1% one week after natural disasters. For man-made disasters S&P on average was down 0.5% one week before but down 4.1% one week after the event. Market sell-off surrounding natural disasters is typically smaller and happens before the event, while the sell-off is larger and happens after the event in case of man-made disasters.
Here are the stats:
Photo: Deutsche Bank
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