Q: Dear 5i
Is investing in insurance companies like SLF a good idea in a declining interest rate enviroment , or are they like banks and make up the difference in lost revenue in other areas of their businesses ?
Also would now be a good time to buy into REITS , DIR specifically as it has not done very well over the past year and therefor more likely to rise more also with declining rates ?
Thanks
Bill C
Is investing in insurance companies like SLF a good idea in a declining interest rate enviroment , or are they like banks and make up the difference in lost revenue in other areas of their businesses ?
Also would now be a good time to buy into REITS , DIR specifically as it has not done very well over the past year and therefor more likely to rise more also with declining rates ?
Thanks
Bill C
5i Research Answer:
Generally, insurance companies do better in a time of rising rates, because they earn more on...