Hurricanes and the Stock Market- From a Floridian’s Point of View
The next stock market crash is coming!
Hurricanes are on the way!
With Dorian on the way toward the United States, hurricane season is officially here! This could impact your stock portfolio in a negative or positive way depending on how the severe the damage to our country may be. So, I decided to relate the different categories of a hurricane to negativities within the stock market to help educate you on what you may expect from your stocks in the future.
Category 1 (Market Correction-10% decrease in value)
This is your normal afternoon thunderstorm with stronger than normal winds. At the worst, you may have a few shingles come off your roof and some tree branches scattered around your area. Nothing to be scared of.
Category 2 (Bear Market-20% decrease in value)
Power outages will probably last for a few days and you’ll have to bust out Monopoly to play with your friends, family, or roommates. Expect to see trees down in the streets, perhaps they fell onto a car in your neighborhood, or even worse, somebody’s home.
Category 3 (Recession- Typically the length of a School Year)
Devastating damage will occur! You better have stocked up your home with water because it’s going to take a few days to get everything back in order. You will most likely have to make large repairs that could take 8 months or more to resolve.
Category 4 (Stock Market Crash)
Sudden dramatic storm that comes out of nowhere! Neighborhoods in the areas affected will have catastrophic damage. Everyone will be impacted in some way.
Category 5 (Depression)
This is what the news says is going to happen every hurricane season, but most likely won’t occur. The most notable hurricanes in American history have been named:
Joshua Krafchick, CRPC©, EA