Betting Against Companies Impacted By The Los Angeles Fires
The Costliest Disaster In American History?
The AP suggested recently that the Los Angeles fires could end up being the costliest natural disaster in American history. I’m not sure how “natural” the disaster is, given the vagrant arsonists who’ve been arrested, and the official incompetence which set the stage for it, but given the value of the real estate destroyed so far, the AP might be right.
And that’s not to mention the human cost (speaking of which, a business I’ve purchased from before, Passage Publishing, recommended this local charity, which I hadn’t heard of, if you’d like to donate to victims of the fires: The Dream Center.). Since our focus here is trading, let’s consider which publicly traded companies might incur a large share of the financial costs here.
A Utility And An Insurance Company
The first target here is the most obvious one, Edison International ( EIX 2.89%↑ ), the parent company of the local electric utility Southern California Edison. It was just sued by Los Angeles residents who say one of its utility poles started one of the fires.
If You Are Long Edison International
If you are long Edison International and are still bullish on it, but want to limit your downside risk in case you end up being wrong, you can download the Portfolio Armor optimal hedging app by aiming your iPhone camera at the QR code below (or by tapping here, if you're reading this on your phone).
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