Tuesday August 30. Betting on hurricanes? The news headlines yesterday said, “Dow jumps 255 points as hurricane passes.”, and I was wondering, didn’t they know it would eventually pass?

Tuesday August 30. Betting on hurricanes? The news headlines yesterday said, “Dow jumps 255 points as hurricane passes.”, and I was wondering, didn’t they know it would eventually pass? Maybe they thought we were going to be lost in a never-ending hurricane! Gasp!  The reality is that actually what is happening here is that the market is betting on how bad the hurricane will be, and Hurricane Irene was not as bad as investors had thought, and they felt they had discounted the market too much for it. The weather report is a big part of the crazy world of investing. If you can forecast the weather, maybe you can get rich.