Investors Predict Negative Economic Impact From Summer Storms Will Be Short Term


This week’s Sentiment Survey special question asked AAII members what impact they expect this summer’s storms will have on the economy. Many of the respondents expect both a short-term negative impact from Harvey’s damage and a long-term positive impact from the rebuilding. Broken into overlapping groups, 43% of respondents expect economic growth to be hurt initially, while 38% expect growth to rebound over the longer term. An additional 22% think the storms will have limited or no impact.

Here is a sampling of the responses:

  • “A drag for a brief period following the storms. Then a pickup in housing and materials.”
  • “May hurt some insurers, but may actually increase the economy slightly due to the rebuilding process.”
  • “Neutral impact. Most things will remain unchanged in the economy.”
  • “An opportunity for energy companies to raise prices. Financial/insurance industry will take a hit.”
  • “Little, if any long-term impact.”

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1 Reply to “Investors Predict Negative Economic Impact From Summer Storms Will Be Short Term”

  1. Referring to the hurricane’s impact, I think these storms will have a huge positive impact on the economy. The reason is that Billions will come out from the government which will come into the economy and goes directly into an array of industries including lumber, cement etc, appliances, cars….. Also, Trump promised to have an infrastructure project to re-build bridges roads, railways, etc. Thousands of jobs will also be created putting money directly into the pockets of construction workers, materials workers. No need to wait for the trickle down affect of printing money and then getting gobbled up by companies wanting to buy back shares. Of course, this will fuel inflation, which will make it easier for the government to pay down the national debt with cheap money. I think it’s all positive which will parallel the tech sector boom etc. I’m thinking of this like the “Works” programs created in the 1930’s. My sympathy to all having human and capital losses from the storms. I well feedback.


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