California wildfires, which stocks are hit the hardest?! Insurance stocks!
Goldman Sachs predicts: The fires will drag down Q1 economic growth by approximately 0.2 percentage points, reducing January job gains by 15,000 to 25,000 positions.
JP Morgan: The Los Angeles wildfires are becoming the costliest climate disaster in U.S. history, not just due to the scale of the disaster but also the high value of residential real estate destroyed.
JP Morgan notes that the economic losses from these wildfires are estimated at around $250 billion, surpassing the damage caused by Hurricane Katrina in 2005.
The fires are expected to be among the costliest disasters in modern U.S. history. Wells Fargo and Goldman Sachs estimate insurance losses could reach as high as $30 billion, far exceeding JP Morgan's prediction of $20 billion last week.
The California wildfires have triggered stock price fluctuations for multiple companies. Over the past 5 trading days:
$Edison(EIX.US) fell about 26%,
$Mercury General(MCY.US) dropped around 25%,
$PG & E(PCG.US) declined roughly 19%.
