Life & Health Insurance
Forces specifically driving many Financials groups include expectations for an ongoing yield rally and a steepening yield curve, tax cuts, and loosening financial regulation. While these outcomes remain largely speculation, the odds have improved and any of these developments would be a welcome change.
Property & Casualty Insurance, Life & Health Insurance, Restaurants, and Apparel, Accessories & Textiles all moved into the top quintile.
We are activating the “Life Insurance” concept in September and plan to have an initial exposure of about 6% of our Model Equity portfolio. The sector has picked up on a relative basis in 1992, aided by declining interest rates, improved cost structures, and some reduction of concerns over real estate exposure.