Do not Sell Insurance and Buy Home Depot

I am hearing hurricane trades everywhere and I do not like them here so please make it stop.

I remember the days when this was really a trade but now everyone knows about them and writes about them.

There are few stones left unturned.

So please do not short the insurers and buy building related stocks like a Home Depot ($HD).

I have heard this trade every year during hurricane season since the mid 90s and I’m sure it was discussed well before that.

Its a known trade, its in the market and then some.

The actuaries at insurance companies have been doing this math since Nefertiti inspired Thutmose and they know how to break down the probabilities much better than you do.

In fact, the insurance companies LOVE hurricanes because it is free and effective fear based advertising.  What’s going to make you run out faster to buy insurance than watching Anderson Cooper visit the devastation every night for the next 10 weeks?

I don’t want to be long insurance here but if I did I would be using any anticipatory weakness to buy.

And I’m not planning to short construction related names (though its tempting) but if I was would view any hurricane related strength here as a chance to sell.

$ALL $LOW $TRV