How the LA wildfires may hit Big Bank earnings in 2025
Howard Capital Management CEO and CIO Vance Howard joins Wealth host Brad Smith to discuss his earnings outlook amid the Los Angeles wildfires. Howard warns that the Southern California fires could trigger bank defaults, potentially impacting earnings. "I don't think people have calculated that in yet because it just happened over the past three or four or five days," he explains. He advocates "patience" with bank stocks, noting that if defaults increase, earnings could be affected through the third and fourth quarters. With nearly 12,000 homes lost in Los Angeles, Howard predicts some homeowners may walk away from their mortgage obligations. "That's something to think about," he comments. JPMorgan Chase (JPM) touted record annual profits of $58 billion for 2024 in its latest earnings results. Looking beyond the banking sector, Howard identifies Salesforce (CRM) as a potential outperformer for 2025. Follow along Yahoo Finance's recent coverage of the Southern California forest fires and the insurance industry: Wildfire recovery must address insurance: Rep. Mike FloodSouthern California Edison parent's stock falls amid investigation, lawsuit over alleged role in LA wildfiresCalifornia fires spark insurance crisis, projected losses of $150BInsurance stocks tumble as LA blazes 'among the most costly wildfires' in California historyCalifornia homeowners insurance market tested as fires rageThe risk landscape for insurance in 2025: AXIS CEO talks coverageKey insurance advice amid Southern California wildfires To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Angel Smith
