I posted a link on the Facebook page (might still be in the scroll on the right side of this blog) that a giant solar flare and CME (coronal mass ejection) occurred today (with another hat tip to Ed Carlson for posting it in a chat room I follow).
From spaceweather.com: Geomagnetic storms are possible when the CME arrives 36 to 48 hours hence.
No disputing the science on that one as well as the possibility for problems in communications, satellites and other events that are normally well-protected by the Earth's magnetic field. The problem comes when we start to wonder what happens to the financial markets.
From the grasping at straws department, I suppose disruptions in communications makes people want to sell. But check out the last major solar event on the Dow:
There's a Fed study showing a link between flares and stocks: http://nowandfutures.com/d3/GeomagneticStormsAndTheStockMarket(AtlantaFed)wp0305b.pdf (posted by Mike Carr in that same chat room).
Followed by Tom McClellan: But as with a lot of things that are interesting, it is really hard to find a way to make money from noticing this relationship.
What we do know is that the stock market is drunk on Ben Bernanke's liquidity trough. That is a long-time without any correction of any meaning.
What I really want to do about the solar activity is hop on a plane to Northern Norway and see the Aurora. That is on my personal bucket list.
And for you 2012 end of the world Mayan Nostradamists, here is a link to soothe your chicken little soul:
Time to chuck it all and move to the Caribbean? Pass the Kool-aid margaritas!