A Few Ways Frankenstorm Can Help, Not Hurt You

Getting ready for the storm requires that you think, plan ahead

The east coast is preparing for a Frankenstorm, better known as Hurricane Sandy — a category one storm that is expected to rock the eastern seaboard sometime between late Monday evening and early Tuesday morning. Experts predict that after all is said and done the storm damage will total $18 billion.

As usual, people are hoping for the best and preparing for the worst, which means folks are stocking up on bottled water, flashlights, batteries and generators. Hurricanes are pesky weather systems for people, but boy, do they do wonders for the retail sector. The fear of post-apocalyptic conditions drive people to the stores in droves, and drive stocks up as well.

Looking to increase your investment during this time? Check out these few stocks that will see positive gains post-storm.

Home Improvement: People are looking to secure and hunker down and as a result the sale of timber will increase. Not only that, but flashlights, batteries, and post-storm supplies are needed. Analysts predict a rise in theses stores’ stock, even if it’s for the short term. Check Lowe’s (LOW), Home Depot (HD), Sam’s Club (WMT) and Costco (COST).

Insurance: Most people with stock in Allstate (ALL), Travelers Insurance (TRV) or other insurance companies make claims after the storm, making it a great time to sell stock in these companies. The rough period doesn’t last long as most insurance companies don’t cover water damage due to rising water, so the window to sell is a short one.

Back-up Electric: Look for generator company stock to shoot through the roof for a brief time. When the power goes out, people are going to need something besides body heat to keep them warm. Caterpillar (CAT), John Deere (DE) and Generac (GNRC) are sure to see profits increase in preparation for the next few days.

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