September 7, 2017

Why Does the Market Not Take a Hit when Natural Disasters Happen?

Growing up in a small coastal city of Southern Georgia taught me to reverence hurricanes. They are not just something you see on TV; they are actual monsters to fear. Riding out a storm was never an option with my parents. The sheer magnitude of devastation they leave in their wake quickly brings you to your knees. Now as a CERTIFIED FINANCIAL PLANNER™ in Knoxville, TN, my heart aches for those preparing to overcome Hurricane Harvey in Houston. Not only that one but Hurricane Irma, which is barreling directly toward South Florida. What damage will be left in the wake of her landfall for those residents is yet to be determined. While the heartbreak and gut wrenching scenes of havoc play out before our very eyes, I was recently asked why the stock market has not taken a hit of epic proportions with these destructive storms displacing so many Americans. After all, Houston is the fourth largest city in the U.S. Additionally, the Texas giant produces about 3% – 4% of our county’s $18 Trillion in Gross Domestic Product. Despite those numbers, the market, unlike many of us, seems to be unfazed. With the city being such a major contributor […]
September 1, 2017
steps to prepare for a storm

Steps to Prepare for a Storm

No matter what your religion is, you have probably heard the Bible verse, “Love thy neighbor as thyself.” Or what many refer to as the Golden Rule, which can be found in many religions. Additionally, if you watched any news lately you know that’s exactly what is happening in Houston, TX. As Hurricane Harvey made landfall last week, millions around the country prepped to help with relief efforts. With the amount of devastation, all these efforts are great; however, Texans will be cleaning up long after others that came to their aid have gone home. Major disasters leave more than just physical clean up in their wake. Financial reconditioning will take place as well. As a financial advisor in Knoxville, TN, I am obviously ready and up to the task of helping those dealing with financial displacement during Hurricane Harvey. However, even if you are not dealing with the devastation from this hurricane, your storm is coming and you’ll want to take some steps to prepare. Preparing for the Storm The first order of business is making sure you have the proper insurance. Keep in mind that homeowners coverage typically does not cover floods, which is what most of Texas is dealing […]
October 18, 2016
2016 Election and the Stock Market

The 2016 Election and the Stock Market

Over the past few months, the election and the stock market are topics of discussion on everyone’s lips. Now we are less than a month away from the big day. Despite much debate regarding how the outcome will affect different areas, we have yet seen how it will affect the stock market. With the United States as a key driver of the global economy, the result is likely to yield a reaction. No matter which of the paths we take, we can be sure after the election things will look very different. Overall, we should see a huge impact on health care, taxes, federal regulations, immigration policies, and more in the coming years. However, before we make predictions regarding this election and the stock market; let’s see what effect previous elections had on the stock market and global economy. Which combination is best? According to history, the stock market performed a lot better when the incumbent party won the election. Regardless of which party is that retains the seat, the election results helped the stock market to stabilize. With this being said, there is a slight swing for Republican Presidents but nothing too noticeable. While the decision of who sits […]
October 18, 2016

How Much Will Hurricane Matthew Cost?

Counting the Cost of Hurricanes Whenever disaster strikes, people often wonder: What’s all this going to cost? Though the human toll of injury and death may be incalculable, experts have gotten pretty good at estimating the economic costs of lost production and physical damage due to major storms. According to one economist, about two-thirds of the financial losses of a hurricane are related to property damage while one-third come from economic losses. The insurance costs of property damage due to Matthew’s wind and storm surge are currently estimated to be between $4 billion and $6 billion, though those figures may rise as claims start rolling in. The chart below shows storm damage estimates for four major hurricanes since 1979. We can see that Hurricane Sandy and Hurricane Katrina dwarf Matthew regarding overall damage. However, Matthew is estimated to have a higher percentage of losses due to wind damage, which could have implications for insurance companies. Damage from storm-caused wind and surge is typically covered under standard homeowner’s and business policies, though they are often subject to high deductibles. One estimate of Matthew’s overall cost, including evacuations, lost revenue, and other relevant factors, puts the total cost at over $10 billion. […]