Hurricane Florence effect on Wall Street

Natural disasters are no joking matter. The Carolinas are experiencing one of the worst storms in recent memory, and are benefitting from the hurricane losing quite a bit of power, mitigating some damage.

Even though Wall Street (the actual street) is feeling the effects with increased rainfall in NYC, the effects of the $30-$60 billion dollars worth in damage can be felt inside on the trading floor.

Sectors to watch impacted from the Hurricane

REIT’s

REIT’s impacted by Hurricane Florence could feel a significant pinch, as businesses could be out of operations for months, and flooded homes could force people to relocate, sometimes permanently. One of the more susceptible REIT’s with exposure in low lying areas and prone to flooding is Highwoods Properties ($HIW). With significant exposure in the Raleigh area, $HIW, as well as American Finance Trust ($AFIN) and EastGroup Properties ($EGP), revenue could take a hit, and it’s unclear how much of that would be covered by insurance.

The tradeoff however, is if the REIT properties do experience a loss, if the investments include older properties (say 20-30 year old+ properties), you could see an upgrade in the assets, and a rebuild with a brand new building, actually putting the REIT further ahead than if there was no storm. Keep an eye on loss reporting, and what assets were impacted, because a loss in the short term could mean a newer building and the ability to charge higher rents very soon.

Hotels / Self-Storage

Look for your lower cost extended stay hotels near and around flood hit areas to be full and at 100% occupancy for an extended period of time. This bill could be picked up by the insurance company itself, or even the Red Cross, effectively guaranteeing payment in large chunks.

Self-storage providers such as Public Storage ($PSA), Extra Space Storage ($EXR), and East Coast focus Global Self Storage ($SELF) all could stand to benefit from extended contracts and new customers while homes are being rebuilt and precious items need to be stored.

Healthcare

Healthcare and insurance stocks could also be an interesting play, as companies like LifePoint Health ($LPNT), Community Health Systems ($CYH), Tenet Healthcare ($THC), and HCA Healthcare ($HCA) all fave facilities in the area. Expect an influx of storm victims, and also increased costs from evacuation efforts and staff overtime in the short term reporting periods.

Home Improvement / Repair

Home Improvement and related industry stocks for construction could see a boom from the need for supplies and materials. It is still yet to be seen how much of the $30-$60 billion is damage vs. economic loss, but suffice to day rebuilding efforts and remediation efforts will be quite sizable.

Look at stocks such as Home Depot ($HD), Lowes ($LOW), and Herc Holdings ($HRI) to see gains in the next few quarters from sales bumps due to purchase and leasing.

Agriculture

The Carolinas and the impacted areas are known for farming, and already we are hearing reported damage to tobacco crops, rumored to be a 20% loss on the crops from wind damage. Look to Altria ($MO) and Phillip Morris ($PM) to have (small) interruptions in supply chain.

Other industries hit are corn ($CORN), wheat ($WEAT) ($GRU), sugar ($SGG) ($CANE), soybeans ($SOYB), cotton ($BALB), and livestock ($COW) ($UBC).

Stay safe during Hurricane Florence, and after

We sincerely hope all make it out of this hurricane with life and limb intact, the impact is minimal, and everyone from the family pet to those in intensive care in a hospital make it out alive. This post is to be seen not as profiting from a natural disaster, but to illustrate how many industries are impacted by such a natural disaster.

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)



Comments are closed.