Top Wall Street strategists say Hurricane Harvey will have limited effect on the US stock market.
Harvey is a category 4 hurricane that weakened into a tropical storm but before that, ravaged Houston and other parts of Texas this weekend.
Hurricane Harvey’s savage attack on Houston is probably going to limitedly affect the U.S. stock market, two of Wall Street’s best strategists said.
In a note to customers Monday, John Stoltzfus, boss speculation strategist at Oppenheimer Asset Management, called attention to that misfortunes from storms Katrina and Sandy “were processed and reduced by the business sectors and the national economy moderately rapidly.”
“US value markets have ended up being flexible when confronting harm done by tropical storms and other cataclysmic events. We anticipate that them will react comparably to the present tempest” Stoltzfus said.
“We understand the struggle that Texas will have to overcome but the GDP (and the S&P 500 EPS) impact will probably be far more minimal” than hurricanes Katrina and Sandy, Levkovich said. “Hurricane Katrina left a devastation wake with an estimated $160 billion cost … while Hurricane Sandy was awful as well (estimated at $75 billion). Harvey has lacked a ‘storm surge’ thereby limiting its damage generation despite the deaths already incurred.”