Excerpt below:

Written by John R. Mousseau, CFA & Gabriel Hament of Cumberland Advisors. They took an in-depth look at 12 of the most destructive hurricanes going back to 1989. Here is a crucial table excerpted from their research. (We added red boxes to highlight yield increases.)

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SOURCE:  BLOOMBERG, CUMBERLAND ADVISORS

We observe RISING yields, particularly in the Treasury area, after eight out of twelve storms and the last six storms in a row. We think that points to overall better insurance coverage as well as quicker response by Federal agencies with relief dollars. This response translates, of course, into a higher level of economic activity in the years after a storm, and the bond markets perceive a potentially higher level of inflation.“–Cumberland Advisors

Read full article here: http://www.bestweatherinc.com/markets/irmas-damage-impact-u-s-economy-bonds/


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John R. Mousseau, CFA and Gabrielle Hament
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