ELI5: Is it worth investing in insurance companies in light of the Ashley Madison incident?

Some people are predicting that divorce firms are going earn lots of revenue due to the huge number of cheaters being potentially exposed after Ashley Madison hacking. The bad news for investors is that law firms cannot be publicly traded. However, could insurance companies also see a change in valuation?

I ask this because divorces and lawsuits often go hand-in-hand, and insurance firms that offer divorce and/or legal insurance could potentially see lots of new customers. But at the same time, I could also see how such firms could lose revenue due to the insurance payouts, in which case shorting could be beneficial.

I reckon it would also be worth buying stocks of companies that offer dating services due to large number of soon-to-be single people. :-)

Thoughts?

Submitted August 21, 2015 at 07:19PM by ixfd64 http://ift.tt/1Kbj3zL