We are in the midst of the most active hurricane season in living memory.
Current estimates predict that the United States will spend billions of dollars recovering from Hurricanes Harvey and Irma.
Now the mayor of New Orleans has had to declare a state of emergency ahead of Tropical Storm Nate, which has already been blamed for 22 deaths in Nicaragua and Costa Rica.
This hurricane season has been a historic humanitarian disaster for the U.S., and there are still eight more weeks to go.
My family and I are fortunate to live outside of the zone that typically gets hit by hurricanes.
We’re far enough north and inland on the east coast that we rarely see more than some modest flooding.
However, since mid-August, my house has been awash in hurricane activity.
My lovely and talented wife is the global crisis and issue manager for a Fortune 100 company.
That means I have a ringside seat as she expertly coordinates airlifts, humanitarian aid, emergency equipment, and replacement parts for half a dozen plant sites and thousands of employees impacted by three hurricanes that hit Texas, Florida and Puerto Rico.
And as I’ve watched her working all hours of the day and night over the past few weeks, two thoughts repeatedly came to mind…
First, a deep sense of sorrow and loss for all those impacted by these tragedies followed by wonder at the resilience and resourcefulness at the people working at breakneck speeds to help those who need it.
My second thought is how these natural disasters will affect the market.
When we analyze the impact natural disasters have on the market, we have to look at it from two different vantage points – long-term and short-term.
And it’s that exact insight that I want to share with you today.
I’m going to break down what this year’s hyperactive hurricane season means for the market.