Hurricane Dorian & Your Stocks

This is the story of the hurricane: Batten down the hatches as we examine whether Dorian’s wrath could ripple through the economy. --------------------------------------------------------------------------------------------------

View this email in your browser This is the story of the hurricane: Batten down the hatches as we examine whether Dorian's wrath could ripple through the economy. Plus, what the latest Brexit brouhaha might mean for you, and two new Fool services you'll want to know about. — Nathan Alderman, Stock Up Editor Hurricane Dorian vs. The U.S. Economy One of the strongest storms ever measured in the Atlantic, Hurricane Dorian ravaged the Bahamas with catastrophic damage and heartbreaking loss of life. (You can help its victims by donating to the Red Cross.) But while hurricanes can shatter homes and lives, they rarely succeed in budging economies. Storms like Dorian can weigh on consumer spending and economic activity in the short term, sharing that pain with the broader stock market. But those losses tend to reverse themselves as cleanup efforts provide a counterbalancing boost. Hurricanes and other major storms have the biggest impact on two classes of companies: The cleanup crew. For obvious reasons, home improvement retailers tend to rise as storm winds and floodwaters recede. They not only sell the essentials people need to prepare to ride out storms, but also the materials to rebuild what Mother Nature wrecks. One major home improvement retailer has even built a dedicated network of distribution centers specifically for post-hurricane recovery efforts. The number crunchers. Insurers get swamped paying out damage claims in the immediate aftermath of a natural disaster, which can damage their short-term results. But in the long run, these companies know how to plan ahead — and raise their rates to make certain they've got plenty of cash on hand when the next calamity hits. Read the rest to learn more about the specific companies that make for smart investments when the skies turn stormy. Already subscribed to a premium service? Click here to view your subscriptions. Not a member yet? Click here to sign up! Watch: Top Chinese Stocks to Watch As the trade war rages on, we survey the Chinese stock market to see which stocks could rise to the top. Why Brexit Still Matters for U.S. Investors Speaking of disasters: British Prime Minister Boris Johnson, determined to take Great Britain out of the European Union by Oct. 31 whether or not his country has managed to iron out a trade deal by then, has closed down Parliament — and all debate or legislation on the issue — until Oct. 15. So far, this hasn't worked out as well for him as he might have hoped. First, Johnson couldn't keep a motley mix of opposition parties, bolstered by defectors from his own Conservative Party, from passing a law that forbids Britain to leave the EU without a trade deal in place. (Critics and many economists warn that "crashing out" without a deal could lead to food and medicine shortages in Britain, customs snags and snarls for goods entering and leaving the country, political unrest on the border with Ireland, and other dire consequences.) Next, Johnson tried to call for a new election, gambling that he could rally enough of the British people to shore up his support in Parliament for a hard Brexit. But again, the opposition parties wouldn't let him, repeatedly voting not to give Johnson that option. Now Parliament's suspended. By the time it returns, lawmakers will have only weeks to either hammer out a trade deal or ask the EU for another extension to buy more time. No one knows what will happen next, but we've put on our best stiff upper lip and given it a try. Large, multinational companies, many based in the US, have benefitted from using the UK as a gateway to doing business in Europe. If the UK crashes out, those companies could suffer as they scramble to find other ways to keep operating on the Continent. Brexit also jeopardizes London's status as a global financial center, and it's wreaking havoc on financial markets. As the pound falls against the dollar, fewer British tourists have an incentive to travel to the US. And if the UK and EU become frosty frenemies instead of bosom chums, the economic hangover could turn the US's long-running bull market bearish. Read the rest to learn why you should still beware a brewing Brexit. Not sure what to ask your smart speaker? Keep up with what's happening in the market by adding our daily flash briefing to your home assistant. Just look for The Motley Fool on your Amazon Alexa or Google Home app, click subscribe, and then you're good to go. Business Tools and Real Estate Get Foolish Let's finish up with some good news, huh? For more than 25 years, The Motley Fool's been demystifying the stock market to help make investors like you smarter, happier, and richer. Now we're branching out to offer the same sound advice to small business owners and real estate investors. Business owners are bombarded with sales pitches for different tools that claim they'll help every enterprise grow and thrive. But how can everyday entrepreneurs figure out which of these services and software actually live up to the hype? At our new site The Blueprint, we've rounded up subject matter experts to put these products through their paces, tell you what works (or doesn't) about each one, and sum up our opinion in one easy-to-read score. We promise jargon-free advice that anyone can understand, and full transparency to keep advertisers or sponsorships from interfering with our opinions. (Or yours.) Visit The Blueprint. We Fools love poking holes in Wall Street's mystique. But why stop with the stock market? We're taking that same fearlessly Foolish approach to the real estate market with Millionacres. Whether you're a novice or a pro, we'll give you the information you need to make smart investments in land and property. Millionacres provides free education and insights for everyone — sound advice from experienced, independent investors, free from advertisers' influence. If you want individual recommendations for specific real estate investments, you can subscribe to Mogul, our related premium service. Visit Millionacres. FEATURED PODCAST Ford's Future and Wendy's Breakfast Moody's downgrades Ford's credit rating to junk status. What does the news mean for Ford and investors? Analysts Andy Cross and Emily Flippen talk about the road ahead for Ford. Plus, we discuss the latest from China-based travel company Ctrip and dig into Wendy's big breakfast plans. Subscribe on iTunes Easily track your favorite stocks with our new browser extension for Google Chrome. Add it to Chrome by going here, then open a new tab and use the "Manage Tickers" button to customize the page with your favorite stocks. Quick Reads Poor kitchens, gathering dust: As Americans eat out more often, some companies are benefitting more than others. Shopify till you dropify: The e-commerce upstart invests big in fulfillment to take on Amazon. "So this is what it feels like when doves cry," Jeff Bezos whispers. Sooooo shiny: Following up from last week, here's a rundown of the new wallet-crushing gadgets Apple just unveiled. Social Media Post of the Week See all our posts! Join the 1,300,000+ people who follow us! We work fervently, feverishly, and Foolishly to make sure all the facts and figures we publish in our emails are 100% accurate and up to date. Returns as of September 11, 2019. Have a question or topic you'd like to see covered in a future edition of Stock Up? Email us at stockup@fool.com. 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