Before Hurricane Rita there was a lot of fear about its consequences that I knew were almost certainly going to be exagerated because Katrina was still fresh in people's minds and as we know people tend to extrapolate recent events beyond what's rational. If it hadn't struck at the weekend I would have put money on insurance stocks rebounding after the damage failed to live up to the drama everyone imagined was coming. Easy money for the risk!
I didn't do it because I didn't want to hold a position over the weekend. If I had I would have done it by buying insurance companies. I'm just not sure which. Does anyone know which companies are most correlated with 'fear' about disasters and are liquid enough to spread bet? I guess insurance is the best sector to bet on with oil being a hedge but has anyone noticed any better bets?
I didn't do it because I didn't want to hold a position over the weekend. If I had I would have done it by buying insurance companies. I'm just not sure which. Does anyone know which companies are most correlated with 'fear' about disasters and are liquid enough to spread bet? I guess insurance is the best sector to bet on with oil being a hedge but has anyone noticed any better bets?
