Big headlines can sometimes cause a broad and a long term based shift in behaviors that we refer to as ‘generational’ shifts in spending. The latest hurricanes, fires and a mass shooting may just bring about such shifts, given the unfortunate circumstances.
Certain sectors of the economy and market are badly hit by natural disasters and tragic incidents whilst others flourish in the aftermath. One major example is World War II, which cemented the US as the global manufacturing and trading hegemon for decades and spawned the baby boomers that formed the world we live in today.
Natural disasters
Seventy-eight million Americans have been hard hit by the hurricanes and fires. While the recent events have been humanitarian disasters, assessing their economic consequences for the country is more complex as so many factors come into play.
Boost to infrastructure and construction sectors
While the immediate economic consequences of disasters may be severe, some sectors experience a boost as rebuilding starts to take place.
