The Katrina memory effect

As we rapidly approach the anniversary of Hurricane Katrina's devastating passage through New Orleans and the surrounding Gulf Coast region, the memory of that destruction could put a little bit of a damper on market sentiment. And wth Hurricane Ernesto now bearing down on the Gulf at the same time, it would be no surprise to see a spike up in oil and energy futures and a decline in overall market sentiment. On the other hand, the approach of the anniversary has haunted markets for an entire year and Ernesto is currently tracking more towards Florida than the oil production areas, so we could actually see more of a relief rally in the markets and a pullback in energy commodities as people grow more comfortable with a less eventful storm season.

-- Jack Krupansky