Hurricane Sandy Delays Economic RecoveryGreetings from sunny Las Vegas, where I recently arrived from New York. I missed the hurricane and it’s hard to believe looking at the images on the news that the devastation hit those very places I was just visiting.
So what kind of impact will this megastorm have on the economy? As the millions of people affected by this tragic event continue to sit in darkness because the power is out, the speculation has already started about how big the losses will be. According to some sources, losses are expected to top $25 billion. The stock markets being closed for a significant period of time makes it hard to predict what will happen to prices once they are up and running.
Overall, economists are predicting that the loss of business and property will come close to evening out by the money that will go into rebuilding and recovery efforts. What the storm has done is delay the recovery that the U.S. has been experiencing. An event such as this disrupts the balance of the economy by temporarily cancelling out some jobs because of damage, while creating jobs for rebuilding. Some businesses and sectors (think Home Depot) will benefit, while others will suffer. It will create opportunities and for those who jump on the bandwagon early, they could be good ones. Those of you who have been following me for a while know that my real estate investing strategy does not involve speculation and gambling. I look for solid growth markets with long term opportunities, rather than quick cash grabs that may be risky. If I did get involved in the inevitable opportunities created in real estate on the eastern coast, it would be to help in the recovery efforts. My main goal would be to create a win-win situation by helping people get back on their feet, while simultaneously creating a profit for my investors. I was involved in these types of projects in New Orleans and am still working in that market after Hurricane Isaac. To find out more about how I evaluate a market for the best real estate investing opportunities, check out the replay of my recent webinar