Financial Protection from Swine Flu

Posted on April 26th, 2009 by admin in Political Economy

If you believe swine flu is likely to become a pandemic in USA, then you should strongly consider taking positions in a variety of securities that very likely will be strongly affected as a result of swine flu pandemic.

Overall, productivity in business could fall significantly as companies deal with absenteeism and loss of personnel. Consumers would become even more financially stretched as they deal with increased medical costs for themselves or sick family members. Certain industries could benefit, such as health care and anti-viral medicine manufacturers, or makers of N95 protective face masks, while others, such as airline companies, could face significant loss of revenue.

Personally, I believe the S&P500 would be likely to drop if the public perceives a pandemic emerging. Thus, buying some index put options could make a nice hedge.

You can be sure the trading desks of every major bank has a position ready to execute on Monday 4-27-09, if not taken already!

Leave a Reply

More News