I always knew that weather affects stocks across the world. It may seem ironical that in an analytical world, Mother Nature calls the shots.
My reason for saying this is a tropical storm called Earnesto. Until yesterday it posed a threat to the oil rigs in the Gulf of Mexico. Result: NYSE reported an all week low. A shift in whirling winds towards the East coast, away from the rigs saw a marked increase in the stock value.
However the late night Closing Bell at CNBC TV18, spoke about how the iminent threat to oil industry is a boon for the energy sector. The alternative energy sector, or the tidal wave energysector stand to gain from the hurricanes. Infact in case of any form or destruction from the tropical storm is expected to see a marginal gain in the stock values of infrastructural businesses.
I feel the next two decades will see the rise of alternative energy sector as a wise stock option. Its here to stay(I might profile Suzlon Energy soon). This, in the face of an expensive oil stock and depleting energy resources. However as per analysts, any impending oil crisis, will see the automotive sector post declines. The same could be said of region specific consumer goods.
What you applaud you encourage ; be wary of what you celebrate--Peggy Newman