Hurricane Helene was devastating, and it impacted so much more than just Asheville. Hurricanes can cause major claims, leading to a temporary dip in stock prices for these insurers, creating a chance to buy at a discount. Although insurers face huge costs when these disasters strike, they benefit from collecting high premiums that continue to rise in coastal areas. Only time will tell how the impacted areas, the insurance companies, and the stock market will recover in the aftermath. Today we discuss...
- Hurricane Helene and the other hurricane that is on it's way.
- The opportunity for investors to buy discounted property and casualty insurance stocks during high-claim seasons.
- Property casualty insurers’ strength lies in their ability to collect premiums and invest the float before claims are paid.
- Warren Buffett’s investment strategy with property casualty insurance, leveraging the float for long-term investments like Coca-Cola.
- Buffett’s investment prowess and how insurers gain an advantage by not needing to borrow money to grow.
- The complex nature of analyzing property casualty insurers, which requires specific metrics.
- A note on Hurricane Helene and the financial impact of other costly hurricanes.
- Update on the Federal Reserve’s plans for interest rate cuts and fluctuating market expectations.
- Warning about the unreliability of government data, especially close to elections, and how market participants respond to such data.
- People are uncertain about market trends, and data may not always be reliable.
- Data manipulation in government reports has occurred, so numbers should be taken as guides, not definitive facts.
- A significant number of government employees were hired in September, influencing employment statistics.
- Elections add volatility to markets, with uncertainty often causing swings before stabilizing afterward.
- Corporate media often shapes narratives, leaving people feeling frustrated and distrustful of information.
- Extremist factions in politics are gaining influence, with candidates catering to these groups for votes.
- Many voters align with their party regardless of the candidate, reducing the significance of "undecided" voters.
- Wall Street prefers certainty, with market trends stabilizing after election results are confirmed.
"Cash is not trash... Cash is King" - Kirk Chisholm
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Today's Guest: Kirk Chisholm
Kirk Chisholm is a Wealth Manager and Principal at Innovative Advisory Group, an independent Registered Investment Advisor located in Lexington, MA. He has been providing wealth management services to individuals, executives, entrepreneurs, and their families since 1999. He is an outside the box thinker, risk manager, inflation expert, blogger, podcaster, and all-around interesting guy. Kirk is dedicated to developing lasting relationships with all of his clients and their families. One of the benefits of working with Kirk is his patience, empathy, and his ability to provide clear and easy-to-understand explanations to complex financial topics.
Kirk developed a unique philosophy for the wealth management industry called Risk Management First. The medical field has a similar way of thinking of “first do no harm”. This philosophy focuses on risk management for clients in all aspects of their lives in ways the industry does not address. Risk management does not stop with investments. It also requires working closely with other professionals to address areas of their financial lives not currently being met.
In 2008, Kirk co-founded Innovative Advisory Group to address the needs not being addressed by the wealth management industry. It started with specializing in alternative assets held in retirement accounts (i.e. self directed IRAs/401ks). Then the company expanded into the specialization of college funding (i.e. planning, strategy, and paying the least possible for a high quality education), Risk Management First, exit planning for business owners, advanced planning (estate, tax, etc), and providing practice management and leadership training to other financial advisors, accountants and attorneys.
Kirk's Online Presence:
Today's Panelists
- Kirk Chisholm | Innovative Wealth
- Douglas Heagren | Pro College Planners