JPMorgan looked at the worst hurricanes in the last half century and found which sectors and stocks consistently declined or rose in the 20 days surrounding landfall.
Hurricane Irma is barreling toward the Florida peninsula as a category 4 storm, according to the U.S. National Hurricane Center, and ranks as one of the most powerful Atlantic storms in a century. J.P. Morgan honed in on the five hurricanes which caused damages greater than $25 billion: 2005 Katrina, 2012 Sandy, 1992 Andrew, 2008 Ike and 2005 Wilma.
"The most significant impact on equity performance is seen at the stock and sub-industry level" rather than in the aggregate market, a team of J.P. Morgan analysts wrote in a note.
With Irma hot on the heels of Harvey, which brought unprecedented, tragic flooding to the Houston area, J.P. Morgan believes the cost of the two hurricanes will exceed $260 billion – or over 50 percent of the combined $520 billion in losses from the last 50 years.
Looking at the 10 days before and after a major U.S. landfall, J.P Morgan found five subindustries which rose by around 2 percent or more: distributors, construction materials, automobiles, diversified financial services and air freight & logistics.