A thought crossing my mind today was to think back to the last time a huge storm hit Southern England. Once that had far more impact than today. That storm was in 1987. Also that month as well as the horrific weather we saw the Great Crash of Black Monday, which as a week before the storm. Although the great crash was a huge event, it did not spark off a huge recession in the way that the financial crash of 2008 did.
The markets were toppy at the time after years of unfettered growth from the mid-eighties and the prevalence of a new product called mortgage backed securities that had accessed new cash flows for investors. Still, by numbers it was a huge fall, as October crashes often are. Also it was out of the blue, which is what makes it stick in so many peoples memories.
Even if we had a big run on the FTSE now, there would be a more resigned air to it by market participants - there are just too many known dangers for people to be worried about right now. Still, only a couple of days left in October and then we can head into the annual run up to Christmas which should see market drift up towards year highs from where we are placed.