Does anyone here have experience with “Disaster Investing”? I have read some people would buy a company that makes windows when an earthquake strikes a particular area and such, because they expect people to replace their broken windows, etc.
Does anyone here have any experience with disaster investing on a global basis?
You would have to be quick on the draw.
I suppose one strategy would be to categorize companies into types of disaster (earthquakes, torandos, etc.), and then by location, and then buy the category on news of the disaster. You could make this very targeted, such as, if a particular construction company’s headquarters gets destroyed by an earthquake, the price of that company could actually go down instead.
You pretty much can make an algorithm, which leads to the question: Is Wall Street doing it already?