Chad Sheaffer, CFA, CAIA
Research Analyst
The 2022 hurricane season is the latest headwind in a challenging year for investors. Last week, Hurricane Ian made landfall in Florida as a powerful Category 4 hurricane, unleashing heavy rains, high sustained winds, and extensive flooding along the coast. While the full extent of damages and the ultimate impact on the U.S. economy will not be known for several months, preliminary estimates indicate that Hurricane Ian will rank among the top 10 costliest storms in U.S. history. Current estimates of Hurricane Ian’s total cost — including damages and lost economic activity — range widely from $65 billion to as much as $120 billion. While several industries across the southeastern United States have been negatively impacted, Hurricane Ian’s overall impact on U.S. GDP is expected to be limited. Recent analysis by EY Parthenon, Ernst and Young’s global consulting arm, projects GDP to be reduced by 30 basis points in Q3 and 10 basis points in Q4 as a result of the hurricane. Natural disasters tend to have short-term economic consequences, with lost economic output recovered over time as federal assistance and insurance payouts allow communities to rebuild. Reconstruction efforts can also provide a temporary boost to GDP. As with other sources of uncertainty, Marquette encourages investors to maintain discipline and stick to long-term strategic allocations to best weather the market’s storms.
Print PDF> Picking up the Pieces: Assessing the Economic Impact of Hurricane Ian
01.25.2023
As winter takes hold in the northern hemisphere, there are those that choose to escape to warmer climates and those…
01.05.2023
This video is a recording of a live webinar held January 19 by Marquette’s research team, featuring in-depth analysis of…
01.24.2023
China has been a hot topic over the last year amid market-moving headlines and heightened stock market volatility. U.S.-China geopolitical…
01.17.2023
If recent data points collected by the Federal Reserve are any indication, major financial institutions are bracing for a period…
01.11.2023
Some of the key hallmarks of an attractive private equity deal include businesses with a loyal and diversified customer base,…
01.04.2023
Last summer, gasoline prices retreating was one of the first bright spots at the macroeconomic level. Since then, CPI has…
Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.
We respect your privacy. We will never share or sell your information.
If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.
Contact Us >