Hurricanes can cause a lot of things to happen out in nature, but also behind your computer screen. Just like how they could ruin and have an effect on your local produce market, they can also have an effect on the stock market. While some stocks are more likely to go down during a hurricane or during hurricane season, many are known to see growth during these times.
Keep in mind that hurricane season is generally from, June 1 to November 30. While this gap of time may seem large, the most significant impact on the stock market happens when there is an actual hurricane taking place.
Here are some of the best stocks to buy when a hurricane wreaks havoc.
This one will come as no surprise as the products that Generac Holdings produces are home backup generators. The demand for generators will increase as a hurricane or severe storm worsens. Generac Holdings was the first to engineer affordable home standby generators and is currently the top manufacturer. If the weather would cause power outages, this is the company to buy from. As a result, their stock soars during hurricane season. Be wary though the demand for generators significantly drops outside of hurricane season, so this may not a long-term investment.
Proctor & Gamble
I know, you may be thinking “Proctor & Gamble? Who is going to buy cleaning and beauty supplies during a hurricane?”. You have a point, but I bet you didn’t know that Proctor & Gamble also owns Duracell, one of the leading battery brands in the world. Consumers love to stock up on batteries before a storm hits so they can power their flashlights and radios. Another great time for their stock to rise.
Home Depot & Lowe’s
For these stock, you want to buy them before a storm is about to happen and hold onto them well after the storm has ceased. Both of these companies sell items that people will need and use before during and after a severe storm or hurricane. You won’t see as much of a significant rise in the stock as you would other companies with how large their stocks are, but you may see a couple of percentage point rise.
Always do your research before buying stocks. Remember, stocks aren’t always going to go your way even if you may think you have the perfect pick. Make sure you know what type of game you want to play as well. And know your end game. Know when to get out.