Many of us check the weather forecast to plan our day – to decide whether to carry an umbrella, postpone a trip or work from home when snow is on the horizon. But weather alerts can influence more than just our personal routines. They can also move financial markets.
We have explored this phenomenon in our new research and our findings were both surprising and increasingly relevant in a world of climate change. It seems severe weather alerts can indeed move stock prices. This was unexpected, as alerts are simply warnings, not actual disasters. Yet they are enough to shift market values.
