Hello friends!
Let's briefly go over this month's dramatic news:
The United States experienced serious upheavals – a harsh snowstorm – followed by a massive fire – in Los Angeles.
What burned? - Everything.
Hollywood studios, infrastructure, homes, contents, and more.
And who is hurting the most financially? - Insurance companies, of course.
Because when it comes to compensation, they are the first to open their wallets.
But hey, someone needs to sort out the mess the day after, right?
Well, this is where infrastructure and reconstruction companies come in – they are starting to receive lucrative contracts – after all, everything needs to be rebuilt.
What needs to be built? Homes, studios, electricity infrastructure, communications, and internet – and the list is long.
Damages are estimated at over $150 billion to date.
Insurance companies have so far lost over $20 billion in market cap to date.
Over 40,000 dunams of land and 12,000 structures have burned to date.
Let's clarify:
Who might lose from the mess?
Insurance, real estate, and contents companies.
And who might profit from the mess?
Infrastructure reconstruction companies – electricity, water, and communications – because someone needs to rebuild everything, right?
And after the reconstruction?
Remember that there is expected to be an increase in the consumption of new furniture and electrical appliances.
So who might be prominent in the mess?
"Paying the price" - these are the leading insurance companies in the US: $ALL $TRV $AIG $CB $HIG
"Reconstructing infrastructure" - these are the leading infrastructure reconstruction companies in the US: $MTZ $EME $J $KBR $ACM $PWR $GVA $TPC $FLR $VMC
Credit to dear channel follower Or!