Morning Report Monday 19 January 2015
The Insurance sector has had a poor week, do we buy yet?
In a week when the market fell 3%, the insurance sector fell 4.5% (50% more), without the added woes of Oil, Copper or Iron Ore. What caught my eye with this relative underperformance was the comparative strength in the other stalwart yield sectors, banks only down 2.6% and Telstra up 2.5%. With the exception of QBE that suffered noticeably from the markets belief of “US interest rates lower for longer” there was no standout reason for the poor relative performance. I anticipate investing 20% of my funds into the insurance sector if we get the 10% pullback in US equities that I am predicting hence we should be planning which stocks and entry levels now – refer to recent “Hickman Report”.
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