Los Angeles wildfires are on track to be among the costliest in US history, with losses already expected to exceed $135 billion, an area that is home to some of the most expensive property in the US.
The insurance industry is also bracing for a major hit, with analysts from firms such as Morningstar and JP Morgan forecasting insured losses of more than $8bn.
According to Jesse Livermore, when he shorted the market in 1906, the newspapers were downplaying the extent of the disaster, the San Francisco earthquake and the fires.
Fire hydrants have run dry....with no water. Firefighters in Los Angeles continue to battle fast-moving fires under evacuation orders. 180,000 people under evacuation orders.
According to Reminiscences of a Stock Operator, he said:
“I began to see more clearly—perhaps I should say more maturely—that since the entire list moves in accordance with the main current… Obviously the thing to do was to be bullish in a bull market and bearish in a bear market. Sounds silly, doesn’t it? But I had to grasp that general principle firmly before I saw that to put it into practice really meant to anticipate probabilities. It took me a long time to learn to trade on those lines."
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