{"id":668,"date":"2011-03-14T04:10:47","date_gmt":"2011-03-14T04:10:47","guid":{"rendered":"http:\/\/www.cashthechaos.com\/blog\/?p=668"},"modified":"2011-03-29T01:09:39","modified_gmt":"2011-03-29T01:09:39","slug":"disasters-and-market-trend","status":"publish","type":"post","link":"https:\/\/www.cashthechaos.com\/blog\/2011\/03\/14\/disasters-and-market-trend\/","title":{"rendered":"Disaster\u2019s and Market Trend"},"content":{"rendered":"<p>When earthquake\/tsunami struck Japan on Friday, I'm sure you would have heard in the media how this was affecting the sentiments of the markets. Here are few things one must know :<\/p>\n<p>Let us take a look at the powerful Kobe Earthquake that struck Japan in 1995\u00a0and caused $102.5 billion damage:<\/p>\n<div id=\"attachment_669\" style=\"width: 410px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/NKYKobe.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-669\" class=\"size-medium wp-image-669 \" title=\"Nikkei\" src=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/NKYKobe-300x136.jpg\" alt=\"\" width=\"400\" height=\"200\" \/><\/a><p id=\"caption-attachment-669\" class=\"wp-caption-text\">Nikkei - during Kobe Earthquake<\/p><\/div>\n<p>It is obvious from the chart that the Earthquake\u00a0occurred\u00a0during the down trend and did not create any reversal on its own.<\/p>\n<p>Now let us a look at the Latur Earthquake that left nearly 8000 dead in India and its impact on Sensex.<\/p>\n<div id=\"attachment_671\" style=\"width: 310px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SensexLatur.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-671\" class=\"size-medium wp-image-671\" title=\"Sensex\" src=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SensexLatur-300x133.jpg\" alt=\"\" width=\"300\" height=\"133\" srcset=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SensexLatur-300x133.jpg 300w, https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SensexLatur-1024x456.jpg 1024w, https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SensexLatur.jpg 1220w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-671\" class=\"wp-caption-text\">Sensex and Latur Earthquake<\/p><\/div>\n<p>What about the Tsunami of 2004 that left 230,000 dead in Asia?<\/p>\n<div id=\"attachment_672\" style=\"width: 410px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/NiftyTsunami04.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-672\" class=\"size-medium wp-image-672 \" title=\"Nifty\" src=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/NiftyTsunami04-300x130.jpg\" alt=\"\" width=\"400\" height=\"200\" \/><\/a><p id=\"caption-attachment-672\" class=\"wp-caption-text\">Nifty during Tsunami04<\/p><\/div>\n<p>Looking at the charts, if one were to think no natural disaster occurred on Dec 26th 2004, he\/she can be excused!!<\/p>\n<p>The picture is similar even if one looked at the man-made disasters like Bomb blasts and terrorist attacks!<\/p>\n<p>The infamous WTC attack:<\/p>\n<p><a href=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SPXWTC.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-673\" title=\"SPXWTC\" src=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/SPXWTC-300x130.jpg\" alt=\"\" width=\"400\" height=\"200\" \/><\/a><\/p>\n<p>While the reaction may have been pronounced, would it have mattered had it occured when the market trend was up?<\/p>\n<p>So let us look at markets reaction to mumbai serial blasts of August 2005:<\/p>\n<div id=\"attachment_674\" style=\"width: 410px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/NiftyAugserialblast.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-674\" class=\"size-medium wp-image-674 \" title=\"Nifty\" src=\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/NiftyAugserialblast-300x135.jpg\" alt=\"\" width=\"400\" height=\"200\" \/><\/a><p id=\"caption-attachment-674\" class=\"wp-caption-text\">Nifty during the Aug 03 Serial blast<\/p><\/div>\n<p>So, the next time you hear someone on media say that such and such exogenous events is causing the markets to decline you might want give these charts a thought. <em>While there might be initial knee jerk reactions, these events do not even cause short term reversals<\/em>!!! All one has to know is, what is the trend.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When earthquake\/tsunami struck Japan on Friday, I&#8217;m sure you would have heard in the media how this was affecting the sentiments of the markets. Here are few things one must know : Let us take a look at the powerful Kobe Earthquake that struck Japan in 1995\u00a0and caused $102.5 billion damage: It is obvious from <a href='https:\/\/www.cashthechaos.com\/blog\/2011\/03\/14\/disasters-and-market-trend\/' class='excerpt-more'>[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[52,55,11,92,54,53],"class_list":["post-668","post","type-post","status-publish","format-standard","hentry","category-world-markets","tag-2004-tsunami","tag-kobe-earthquake","tag-linkedin","tag-nifty","tag-nikkei-225","tag-sensex","category-45-id","post-seq-1","post-parity-odd","meta-position-corners","fix"],"_links":{"self":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/comments?post=668"}],"version-history":[{"count":8,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/668\/revisions"}],"predecessor-version":[{"id":714,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/668\/revisions\/714"}],"wp:attachment":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/media?parent=668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/categories?post=668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/tags?post=668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}