Airline stocks collapsed across the world as investors tracked the dark clouds of ash over European skies. Some economists have even warned that if the disruptions from Iceland’s volcanic eruption are not resolved soon enough, it could hit European economies just as they are emerging from a debilitating slowdown.
All investors know that commodities markets can plunge or soar because of the weather, but many researchers have previously proved that the weather and stock markets are also closely linked.
For instance, returns from stocks tend to be significantly lower during the hot season and fall months than during winter and spring months. In India, all investors pray for a normal monsoon at this time of the year.
Experts say that in the coming years, climate change could lead to more earthquakes, tsunamis, volcanic eruptions and landslides. In Iran, they even want to move the capital out of Tehran because it’s susceptible to earthquakes.
Maybe it’s time investors tracked nature as closely as they do technicals