Monday, July 23, 2012

How The Markets Reacted To 13 Mega Disasters ... - Business Insider

Pearl Harbor

Between two world wars, multiple natural disasters and a major terrorist attack, the U.S. has been to hell and back...and back again.

Yet each time, the markets eventually regained their footing.

To be sure, in many cases, it took awhile.

We asked Dow Jones and Standard and Poor's to send us the complete returns for their indices since their respective inceptions to see how markets reacted to major cataclysms.

What's most surprising are the events that did not produce major market collapses.

Hurricane Camille, the attempted assassination of Ronald Reagan, the Martin Luther King riots ? the markets reacted with nary a shrug to each.?

Our conclusion: the markets are often down ? but never out.

*One caveat, we picked events where returns clearly changed after the date of the event, but other factors and happenings may have contributed to prolonging losses.

Source: http://www.businessinsider.com/market-reaction-disasters-us-history-2012-7

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