Australian Investment Blog

Banks share prices have a negative correlation to rising interest rates, but insurance company’s earnings benefit from rising rates.

Retail investors have become complacent on their bank holdings over the last decade for good reason, but markets do evolve and conditions change.

With interest rate rises clearly on the horizon, even if Australia is likely to be late to the party, investors should be laying some plans.

My initial plan is to lighten bank holdings & add to an insurance stock – chat with accountants re: tax advice may be required on any bank selling.

I understand investors’ hesitation after the QBE experience, people often say “never invest in insurance or airlines” so I am being a little radical.