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Insurance looks most likely to lead
The best single sector from a technical and fundamental perspective, with less risk from bond-yield scenarios (will work even if steepens without rising inflation expectations), is Insurance. It is the...
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The risk to selling bond-proxies (at least those with growth)
This is PCE (ex Food and Energy), a key determinant in FED thinking. It rose 1.05% in the year through April, its smallest gain since records began in the 1960s. The FED targets 2% inflation. Whether...
View ArticleRising rates/low inflation = Insurance wins
As we discussed in our strategy update piece last week, when yields rise slowly and inflation expectations are contained, as today, then financials (especially Insurers) out-perform. We wrote a little...
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US Yield curve & European Insurance
As discussed, Insurance is one space that (once the dust settles) will significantly benefit from the bond market moves. Fundamentals & technicals also back this up. Best stocks to look for are EU...
View ArticleDelta Lloyd (new aviate BUY): rising yields makes for compelling income growth
Delta Lloyd is unique in Dutch Insurance, it is the only insurer that didn’t need government support in the crisis and they are super conservative by marking liabilities to market (hence Aviva couldn’t...
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