Economic Impact of KatrinaThis article from AP and Yahoo is typical of what I have seen so far of the economic projections from Katrina...
Katrina Expected to Disrupt Economy
By Jeannine Aversa, AP Economics Writer
Surging Energy Prices, Business Disruptions From Hurricane Katrina Threaten to Slow Economy
WASHINGTON (AP) -- Surging energy prices and business disruptions from Hurricane Katrina, likely the costliest natural disaster in U.S. history, threaten to slow what has been a steadily expanding economy.
While the damage has yet to be fully assessed, economists and other experts believe the disaster will rack up insured losses of up to $25 billion. That would surpass the $21 billion (in inflation-adjusted losses) stemming from Hurricane Andrew in 1992, analysts said.
"This will be one of the -- if not the -- biggest single event in terms of insured losses in U.S. history," said Julie Rochman, spokeswoman at the American Insurance Association.
Read more of this article...
I think there is also another way to look at it. There will be billions of disaster relief money flooding into Louisiana, Alabama and Mississippi. Where will all of that money be spent?
Here are a few places that may have a good quarter or so...
Home Depot HD up only 1.5% this week.
Tractor Supply TSCO I see a big boost to revenue.
Also furniture: Haverty HVTA, Aaron Rents RNT, Basset Furniture BSET, Chromcraft Revington CRC, Dorrell Ind DIIB, Furniture Brands FBN...
Also names like Mohawk Industries, MHK for carpet and flooring. There must be other good carpet companies. What's the first thing you replace after a flood?
CAVALIER HOMES INC (CAV)
MODTECH HOLDINGS INC (MODT) This will be a fast mover.
SKYLINE CORP (SKY) volatile
CENTEX CORP (CTX)
CHAMPION ENTERPRISES INC (CHB)
For the next few quarters anyone who can fill the demand for temporary buildings in the washed-out areas will make money. Longer term, home builders will have plenty of work. Luckily, there are alot of carpenters along this area of the gulf coast. Anyone who wants to swing a hammer will be able to get a job here.
So, with $25 billion of insured losses there will be alot of purchases of replacement homes and stuff. While this may be a drag on the economy in some ways, it will be a boost in others.