I know that there are already a couple of threads regarding whether the fires will be good for the local economy or not. Regardless, it stands to reason that at least some companies, such as those that specialize in fire recovery will benefit from this disaster.
I’m trying to compile a list of publicly traded companies which could see a boost in revenue this year because of this additional income. Optimally they would be primarily focused on Southern California. Right now I can only think of national chains, such as Costco, Home Depot, Lowes, etc. but I doubt they will really benefit that much from additional sales if you consider the losses they also took as a result of the fires.
Maybe shorting fire insurance companies might be a good play as well? Or maybe not if they manage to weasel their way out of paying like they did in Katrina.
I wouldn’t short insurance companies. The estimated $1.6 billion loss is peanuts to them and this year’s losses are much less than they had planned for thanks to no hurricanes.
If you want to short think banks and brokers although with another Fed cut likely next week that’s not for sure. I still think the homebuilders have another leg down but the short interest is so high in most of them that all the covering has kept them flat or even higher for the last couple months.
I wouldn’t short insurance companies. The estimated $1.6 billion loss is peanuts to them and this year’s losses are much less than they had planned for thanks to no hurricanes.
If you want to short think banks and brokers although with another Fed cut likely next week that’s not for sure. I still think the homebuilders have another leg down but the short interest is so high in most of them that all the covering has kept them flat or even higher for the last couple months.
I wouldn’t short insurance companies. The estimated $1.6 billion loss is peanuts to them and this year’s losses are much less than they had planned for thanks to no hurricanes.
If you want to short think banks and brokers although with another Fed cut likely next week that’s not for sure. I still think the homebuilders have another leg down but the short interest is so high in most of them that all the covering has kept them flat or even higher for the last couple months.
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