i think everyone is missing the point third and fourth quarters are total losses, but in the next 6-9 months as things are cleaned up people will be building new homes, fixing homes up, buying furniture, buying new TV's and computers, businesses will be replacing a ton of infrastructure and upgrading things to be disaster recoverable. After 9/11 all the wall street companies spent billions of $$$ on second datacenters and other redundant infrastructure.
doesn't that go both ways though? i mean, won't a lot of that happen with insurance money? and from that, won't it put insurance companies in a less profitable (note i didn't suggest unprofitable ) position? so it looks like that is basically a wash - one industry gets hit big time, while several industries get a bit of a bump. also, wouldn't that be more of a factor further down the line than today? again, just trying to wrap the gray matter around it all thx and take care - omni
so then, is the expectation that those in the know will be pushing up the market to liquidate at about the same time John Q decides to start getting back into the market? and that's when what's happening today leads to the real sell-off from top? thx - omni
Could be. After the initial drop following 9/11, the markets started to rise. Could be the same thing here.
btw, dunno if it is already common knowledge, but you can go to: http://smr.com/homepage.htm and get a daily chart on 40+ commodities and 50+ stocks. there's a daily pdf 'book' for each category (stocks and commodities) as well as links to individual listings. nothing major, but it is pretty convenient. hth take care - omni
the idea that the fed is done trumps all of this for now. until we get a new data point to bring fed worries back into the picture buy dips imho.
6 dollar gas in Atlanta. A major city in the US totally destroyed. Somewhere near a million people displaced. I just can't see how this could be anything but bad news. This reminds me of post 9/11 when people were saying it's unpatriotic to sell stocks and then the bottom fell out. I wonder if we get a delayed reaction like a previous poster mentioned.
the insurance comps can then raise rates,not just for that area but all areas. they probably come out ahead in the longer term.