Wealth through Investing

Weekend Reads: The Eye of the Storm

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Meteorologists are constantly adjusting statistical methods to make their weather predictions more accurate. Yet storm systems often deliver unforeseen damage and stray from their anticipated trajectories.

In finance, this is par for the course. The perils of market forecasting are well known. After all, you can’t time the market. And the weather, it turns out, can be just as difficult to anticipate with precision.

And that poses a problem. Scientists at the National Oceanic and Atmospheric Administration (NOAA) predict there are more dangerous storms on the horizon this year than average. Of course, they can’t say where or when they will strike.

The NOAA raised the likelihood of an above-average hurricane season from 45% to 60% citing the climate patterns observed since May. The number of named storms in the Atlantic thus far this year is twice what it was at this time last year.

Weather isn’t the only area of volatility this week. The United States and North Korea are facing off again over the latter’s recent missile tests and investors are jittery. For the first time since April, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite Index all dropped for three consecutive sessions. But it wasn’t all bad news: Gold and the Japanese yen are doing just fine.

Below are other reads on hurricanes, the weather, and the markets, among other topics, that have caught my eye this week.

More on Hurricanes

More about the Weather

Other Nature Reads

Market and Economic News

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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

Image credit: National Oceanic and Atmospheric Administration (NOAA) via Getty Images

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