In 2005 it happened again, this time striking Florida, Mississippi, and Louisiana, with the latter two bearing the brunt of Katrina’s aggression. It was a crushing blow, both financially and psychologically for people throughout the nation. Catastrophes such as this bring untold hardship on good citizens, and leave a wake of destruction that no money, effort, or desire can repair. My thoughts and prayers are with those who lost loved ones in this ordeal, those whose sense of well-being disappeared along with their homes and heirlooms, those, who these many days later, are still wallowing in mud and muck without electricity or potable water, defiant of what God hath wrought, awaiting the opportunity to begin again. They are Americans: Honorable, Proud, Strong, And Resilient.
Unfortunately this happened before and will happen again. Andrew in 1992 is the only hurricane I can recall that even comes close to the television images I saw last week, but there have been others. If you happen to be a victim, tragedy seems not affected by magnitude. Tornados in the Midwest, earthquakes on the West Coast, and volcanoes in the Northwest have wreaked havoc on communities and individuals in relatively recent years. Even New York, a mere four years later, is beginning to seem normal again, though I am sure there are some of you who find the pairing of New York with normal oxymoronic. No matter. What I am trying to say is that the fabric of this nation and the brotherhood within it are largely unparalleled, and in this particular case, the South will indeed rise again.
The rebuilding effort is going to take tremendous resources: Raw materials, fabricated goods, textiles, and if you’re an out of work craftsman, I bet I know a region of the country that is hiring. Moreover, it will come with a hefty price. Corporations and individuals alike will benefit from this new economic activity as some will suffer. Building contractors will win, insurance companies will lose. New concepts regarding construction will be developed and eventually used elsewhere, while old methods will be retired. The flow of capital headed south will serve as a remarkable base for economic renewal, and I am not just “whistling Dixie”. Opportunity exists or will exist for the astute.
Investors have a responsibility to their portfolios to do their homework and understand the nature of the companies in which they invest. For this reason I am not going to recommend any specific companies, but for those who are even remotely analytical, it is clear what is needed in the wake of Katrina. Construction and demolition, engineering, consumer goods, furniture, virtually all the essentials and many of the luxuries lost will be replaced, and for each need, a business will provide. Meaning no disrespect, it seems to me that rather than dwelling on the losses, the pragmatic should seek to take advantage of the opportunities.
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