Two Solid Insurance Plays
The market awakened to a myriad of challenges to the worldwide economy Thursday and turned in one of its worst performances of the year. Moody's did not help matters after the bell by cutting ratings on 15 banks, which was expected late in the day and was a main driver of the selloff. Although I would love to be able to invest in banks given they are still down substantially from pre-crisis levels and have low valuations, it is hard to pull the trigger given all the uncertainty around their balance sheets, the still-challenged housing market, and expanding regulation.
But I have found other areas of the financial sector that offer bargains with very reasonable valuations and solid dividend yields, with much less uncertainty. One of these areas is in the vanilla insurance industry. Here are two stocks in the sector I like at current price levels....330 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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