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Author: RMarkic Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 63934  
Subject: Re: Portfolio Diversifiction Date: 12/18/2012 9:13 PM
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Insurance companies make most of their money from bonds so until interest rates rise the insurance companies will not rise in value much as they will not be able to generate increased incomes

That's a sound bite.

Actually, all this insurance company dead money has moved up pretty nicely already. Since beginning of the year, price appreciation as follows:

GWO +17.6%, SLF + 38.62%, MFC 23.78. Then add in the dividends.

And,I think they are still "relatively" cheap. You can wait till interest rates rise and they get better returns on their float/investments but, the market will reflect that in higher prices.

I certainly can't pick those perfect moments, and I tend to be too early, but even now, I still see lots of upside here. There business is not "normalized" yet, but it will be. Right now between 4% to 5.5% dividend, while you wait for "more" price appreciation.

You pay your money and take your chances.

Rick (keeping it simple)
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