Over the last several months, the US has suffered through several catastrophic events, including wildfires in Canada, a wildfire in Hawaii and a hurricane in Florida. All of these have a few things in common; predictability, a lack of preparation, finger pointing and an effort to blame climate change.
Unfortunately, the political process works against preparedness. Consequently, more of the same is the probable outlook, with avoidable loss of life and property.
Investors should anticipate significant increases in insurance costs and reduced availability. Moreover, a lack of appropriate attention to infrastructure integrity may lead to unexpected, and potentially costly, interruptions in economic activity.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA