Investors could see their stock prices go down by as much as 15% if Hurricane Matthew passes, according to a new research report.
The report from S&P Global Market Intelligence and the Bank of America Merrill Lynch Global Forecasting Institute concluded that if Hurricane Maria passes through the Caribbean and heads south toward Florida, the stock market could fall as low as $1,300 per share by the end of 2018.
“The stock market’s performance over the past few years could suffer a significant drop if hurricane conditions prevail and we see a significant increase in tropical cyclone activity in the Caribbean, which could cause volatility in the market,” S&s Global Market Analysis chief analyst Michael Mankiewicz wrote in a report.
In 2018, the S&ams report noted that a stock’s volatility would likely peak around mid-January 2019, at which point the S &Ps prediction for a 30-day average decline of about 7% in the S and A ranges could come true.
“If hurricane conditions remain favorable, volatility could decrease by 10% or more in the next two months, though this could change in the final quarter as tropical storm conditions improve,” Mankiewis report said.
Investors could see the stock price fall by as many as 15%.
The forecast for hurricane conditions was issued by Mankiwis team of researchers who also included S&ing analysts Jim Loomis, Adam Rifkin, Michael Peltz, and Christopher Pinto.
The analysts said in their report that hurricane conditions could cause a significant decrease in the total stock market value by as low to as about $10,000 in 2018.
By contrast, the forecasts for Maria’s impact on stock markets are similar to those of the S.&.;amp;T.
forecasts released in June, which predict a loss of about $100 million in 2019 and $150 million in 2020.
The outlooks for hurricanes Harvey and Irma, however, are much higher than the forecasts from S &s Global Markets.
The S&am forecasts for Harvey, which is expected to be the most powerful hurricane on record, have been revised down to a Category 4 storm by S& amers, from a Category 1.
The forecast has also been lowered to a tropical storm from a hurricane, from hurricane.