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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: C who wrote (2550)8/2/2000 5:16:10 PM
From: Logain Ablar  Read Replies (2) | Respond to of 33421
 
Hi C:

I'm not a weatherman but I also think the expert from Colorado University (I forget his name) has predicted an active hurricane season.

I'm no expert but have followed hurricanes since they used to have a profound impact on my bonus. In another life I worked in the P&C area of a major insurer. I now have clients that can be adversely impacted. I've just been interested in it. No expert but more knowledgable than the average person.

Its a major reason why one does not invest in a P&C insurer or reinsurer during July to Sept. period. The risk of a CAT is too great. The actual damage to surplus initially will hit the stock price but if enough capacity is taken out the companies can more profitably price the business and the stocks would be good investments for a couple of years.

It actually can bode well for short term spikes in energy prices if wells are shut down for a few days. I don't invest in futures contracts though.

Tim