The United States has been hit by three huge storms in the last 12 months. Last years Hurricane Matthew in Florida was the smallest of the three. The double-hit of Harvey and Irma could culminate in some major changes in the marketplace. What effect do these storms, particularly Irma, have on investment management and capital?
Investment Capital and Hurricane Irma
The effect on Shailesh Dash will likely be marginal. The investment management’s company focus on foreign markets will definitely minimize any potential impact. The various market strain in the United States could have minor effects, but nothing that is likely to be long lasting and substantial. Insurance companies may see record effects, and some of them are reporting 100-year record high losses for 2017 as a preemptive strategy to buffer losses overall.
The storm has been vicious for many families in the Southeast. 2016’s Hurricane Matthew also gave the state a mighty hit. The combination of both storms has been damaging to the marketplace, but any repercussions of these two storms, as well as hurricane Harvey, remains to be seen. It is likely to take close to two years or more for the waves of these three storms to be felt in the marketplace.
Historically, hurricanes have not had a major impact on the stock market and investment capital as a general index. But, it will definitely hurt some focused industries. Part of the reason investment capital companies disburse funds in various areas is to protect against a natural act, such as a hurricane. Investment profiles are diversified to buffer against odd and unpredictable situations, and a hurricane fits this mold perfectly. Insurance industry companies will see a huge hit.
The triple-threat of Harvey, Matthew, and Irma could be disastrous for some of the moderate-sized firms. Storms, such as hurricanes, can change the tide for mid-sized firms and for larger industries, but the larger impact of how these companies respond is unpredictable. If the insurance industry takes a huge hit, it could affect other industries and the larger economy. Thankfully, it seems Dash is removed enough from the current affairs to see little change in the short-term.