Is Investing In Insurance Sector A Good Idea
Usually, the most performing stocks are of banks, autos, consumers, and consumer discretionary. The financials which are a core holding in global and local portfolios and FMCG has done okay. IT is also not too bad. The ones which have really been underperformers have been realty, energy, and metals. If one looks at the markets from the perspective of the last day, one finds that the key trigger which has taken birth and could be a good promise is the fall in the crude oil prices. The crude oil price is currently staying around $55 to a barrel and below. Even if it stabilizes somewhere around $60 to $65 per barrel in an average year, the entire cost structure in the economy would start coming down. On one side the input cost which governs the commodity business. It should in general benefit the entire economic environment as a whole. If one has to select the theme for investment, one would remain comfortable with the kind of an infrastructure asset ownership business. I find that this is one area which could be created as a good theme for investment at present. I find that another theme in which the insurance business, as and when it gets offloaded from the parent companies fold by the private insurance companies, could be a good opportunity for investors. An insurance company is not as exciting as the new social media dot-com that is just gone IPO and made a whole bunch of Silicon Valley nerds rich on paper but that is good for the individual investor. There are more opportunities for value investors when there is less volatility in the stock and less attention from traders.