Forbes writer Matt Schifrin says his “family has suffered through Hurricane Sandy, but I was thinking that it might actually be prudent, from a portfolio perspective, to figure out the best ways to actually turn this tremendous loss into a gain.”
Realizing that supplies such as generators are in hot demand after big storms, Schifrin contacted a custom exchange-traded fund firm, Motif Investing, to see whether the California company had a stock portfolio that scored high returns in the wake of disasters such as Hurricane Katrina. Motif Investing charges $9.99 to create customized ETFs that target macro investing concepts.
“Not surprisingly nearly 30% of the portfolio is committed to building supply firms like Lumber Liquidators, Home Depot, Lowe’s Corp. and USG Corp.,” Schifrin writes.
“There is a home generator company in the mix called Generac Holdings (GNRC). The Waukesha, WI, company’s stock has already seen its shares pop more than 30% in the last five trading days,” he continues.
“Another stock in this motif that has seen lots of volume lately is CubeSmart (CUBE), which is the fourth largest owner and operator of self-storage facilities in the United States. Cube has a 2.3% dividend yield and if you elect to go it alone and buy its 7.75% redeemable perpetual preferred stock you can snag a 7.26% yield. Self storage stocks represent 14% of this Sandy Cleanup index.”
Three of the stocks on Motif Investing’s Rebuilding After Sandy Index appear on BetterInvesting Magazine’s Top 100 List of stocks most widely held by the association’s members in 2012: Home Depot (No. 17), Lowe’s Companies (No. 28) and Owens Corning (No. 33).
Lowe’s was recently chosen by BetterInvesting Magazine’s Editorial Advisory and Securities Review Committee as the “Stock to Study” for January. The January/February issue of BetterInvesting Magazine will begin arriving in subscribers’ homes the week of Jan. 14.
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