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Assessing Hurricane Sandy’s Market Impact

Our weekly newsletter is out, as our sympathies go out to the victims of  Hurricane Sandy. The storm made landfall yesterday, generating more damage than we’ll be able to calculate for days and weeks to come. But what will it mean for your portfolio? We looked at how the event could impact your managers, energy markets, and managed futures as a whole.

People around the country yesterday were glued to broadcasts of the fateful landfall of Frankenstorm upon the East Coast. Though Hurricane Sandy had been downgraded to a post-tropical cyclone and weakened as it moved North, it was still packing merciless rain and 65 mph winds, with news sources reporting anywhere between 6 and 10 million people without power. Over 16,000 flights have been cancelled, and for the first time since the Great Blizzard in 1888, the stock market will be closed for two consecutive days. The images of destruction in New Jersey, alone, are the stuff of nightmares.

As the damage is surveyed today, our thoughts are with Hurricane Sandy’s victims, and their friends and family. But as we begin to pick up the pieces, it’s hard not to wonder what the implications will be beyond the physical damage. How will the markets react? How will the damage impact supply and demand elements in commodity markets? More importantly for many, how will such shifts impact their investment portfolios?

We took a moment to look at how such environmental disasters had impacted the markets in the past, in order to glimpse what might be in store in the coming days and weeks.