Do traders have souls?

That's a question that always springs to mind when I watch the market buzz surrounding any disaster. Whether it's Hurricane Katrina, the great Tsunami, or this week's coup in Thailand; you'll always see articles like this one in the Wall Street Journal [subscription required]. Teaser: "Analysts React to Thai Coup: 'Bargain Opportunity'"

Lovely. It reminds me of a piece I heard on This American Life, Ira Glass' gripping radio show. A commodities trader recounts his education in chaos after the Chernobyl accident. He got to work late, a little stunned by the news, and was amazed to see the energy level was nearing giddy on the trading floor. "That disaster made more money, in one day, that I had made my entire life up 'til then," he said, chuckling uncomfortably.

Michael Kurtz at Bear Stearns has obviously restrained himself greatly, using words like "regrettable" and "political frictions" and "toll." But you can almost feel a teensy bit of glee sparkling through from the Bear Stearns trading floor (you know those traders are known for their distinct lack of polish, don't you?) when he writes, "Investors have heavily penalized Thai stocks since last year amid deepening political uncertainty, with the benchmark SET Index having gained just 9% in U.S. dollar terms since January 2005; as such, the SETI now elicits some of the region's deepest valuation discounts."

There you have it: scoop up the bargains in Thailand, enjoy the chaos while it lasts. If your soul can handle it.

Thai coup reminds us: disaster is good for traders originally appeared on BloggingStocks on Wed, 20 Sep 2006 13:13:00 EST. Please see our terms for use of feeds.