The First Tropical Depression Of The Hurricane Season

By Chris Orr, CCM
Monday, June 30, 2014 2:41 AM EDT

A low pressure center is gaining strength 200 miles east of St. Augustine, Florida, and it will continue grow stronger as a tropical depression through Tuesday. It will wander around off the coast of Florida while it gathers some strength through Tuesday morning.

The weather environment is not very favorable for development, but as it drifts east of Georgia Tuesday night or Wednesday it may approach tropical storm strength.

The storm will remain well offshore as it continues to move northeast, drifting past Cape Hatteras, North Carolina, Thursday night and Friday with winds of 40 to 50 mph. High surf will be the greatest problem with this storm - "Arthur" if it becomes a tropical storm.

Most significantly, the tropical cyclone will help us get a read on how aggressive the National Hurricane Center will be in classifying storms this year. It will also allow us to get a glimpse at how insurance stocks like Allstate (ALL), Travelers (TRV) and Chubb (CB) will react to a tropical storm threat.

I do not have a position in any of the equities in this article and I do not plan to have a position. I the editor of the Daily Extreme Weather Briefing, the Global Extreme Weather Outlook, and also ...

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Mike Nolan • 9 years ago • Member's comment
Chris, could you please go into further detail on how these stocks could be affected by the upcoming storm? Are you saying the companies will experience a boon since many more people will likely purchase insurance, or that the companies will face severe losses from the storms. Don't insurance companies have insurance?