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Economy , Investing

Perfect Storm for Contrarian Investing

September 7, 2017

Last night we had a great meet up in downtown Los Angeles.

(If you are near our next dinner, which is TBA, please join us!)

We talked about everything from launching nano satellites into space to investing in Mexican real estate.

But one of the most interesting conversations came from one of my business partners.

“We had a client come into our office yesterday who wanted to to borrow $2 million,” he said.

“Why?” I asked.

“Because he wants to go buy Houston real estate.”

I just smiled.

That’s Contrarian Investing 101.

Buy when everyone is selling.

Buy when there is blood in the streets.

Hurricane Harvey damage estimates are over $200 billion, which is almost double the cost of hurricane Katrina.

But, that’s old news. Hurricane Harvey happened last week.

This week, Hurricane Irma is looking to bring significant damage to Florida.contrarian investing

Source: Weather

Irma has already mowed over several Caribbean islands, leaving a path of destruction that is still undetermined (this literally happened last night).

And for the US territory Puerto Rico, this is just insult to injury.

Puerto Rico has been battling debt issues, power outages, and mass emigration before this hurricane even formed. Other than an all out war, Puerto Rico is pretty much at rock bottom.

This is a perfect storm for contrarian investing.

In the meantime, I have many friends in Puerto Rico that I am waiting to hear back from. And I have a lot of family in Florida that is directly in the path of Irma.

I’ll have a lot more about this over the next several months.