FOR MONDAY: (9/11) There’s little doubt that Florida will get hit by the hurricane at publication. Sometimes extreme gap downs on these events have nowhere to go but to recover and the S & P couldn’t break key support. The history of Hurricane Andrew in August 1992 had the US stock market down a week until Andrew dissipated into a tropical storm. Gold was higher. The dollar bottomed on the weekly chart a week after Hurricane Andrew was done. It looked like bonds remained bid for a few weeks after the hurricane.
ECOOMIC IMPACT: Studies of major hurricanes like Andrew of Category 3 or higher lead to the following economic impact:
“Local economies of the affected regions, at least in Florida, generally rebounded quickly after the storms. The job markets strengthened following the hurricanes, due to reconstruction efforts in the region. Both federal assistance and private insurance payouts surely contributed to the quick rebound. • Housing activity declined significantly in the months immediately following the hurricanes. But, as with the job market, housing activity returned to pre-storm conditions generally within three or four months after the hurricanes.”
