Believe it or not, the environment plays a strong role within the financial markets. You can look at how markets react to weather conditions in two ways: with extreme examples or basic examples. Both actually have quite a profound impact, although one type we only see a few times per year while the other is ongoing. And both can give you big opportunities to make a profit if you are well versed in how these things influence market prices.

Let’s start with looking at some more extreme situations. This would cover things like Hurricane Sandy and Katrina, earthquakes, and typhoons. The severity of these events and the location of where they occur also can have an effect upon market conditions. For example, when Sandy hit the New Jersey Shore and Manhattan, the immediate impact was huge and very negative. ...continue reading →