Hurricane season began Friday in the Atlantic. Colorado State University forecasters predict five intense hurricanes and 17 named storms. How do you protect your portfolio from this foul weather?
CNBC’s Senior Correspondent Scott Cohn joins the guys from Miami where the city is dealing with Tropical Storm Barry.
He explains the prediction is for 3 to 5 storms that are category 3 or stronger – that’s Katrina strength.
How credible is the forecast?
Scott says last year an El Nino formed in the Pacific and kind of shut down the hurricane season. Forecasters don’t think that will happen this year.
What’s the play?
Karen Finerman and Jeff Macke both like Home Depot (HD) as a hurricane play. Karen also feels hurricane fears could present buying opportunities in some property and casualty insurance stocks, which Dylan says “are in good shape.”
Pete Najarian anticipates that natural gas will go higher in a very active hurricane season and says consequently fertilizer stocks could get hurt. (They use natural gas in the production of fertilizer)
Guy Adami likes McDermott International (MDR) as an infrastructure play.
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Trader disclosure: On June 1, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Najarian Owns (MU), (BTU), (AAPL),(KR), (SWY) Macke Owns (SWY) Finerman Owns (AAPL), (CAT), (HOV) Finerman's Firm Owns (DJ), (TOL), (USG), (WMT), (BJ); S&P Puts, Finerman's Firm & Finerman Own (TYC), (HD), (FLS); CNBC Is A Service Of NBC Universal And Dow Jones
