No surprise here. Sometimes I wonder which industry is more brain dead. The airline industry or ours. At least the airline industry was smart enough to know they had over-capacity and cut it back. When was the last time anybody flew on a plane that was less than 3/4 full? The insurance industry has yet to learn this simple fact.
A cheap and abundant supply of money has caused interest rates to plummet and that causes people to look for a better deal now that their current investments are earning less.
So I think that speculative money is flowing where the perceived retuns are the highest so right now, and the smart money is betting on insurance for the next year or so to achieve their investment expectations.
No surprise here. Sometimes I wonder which industry is more brain dead. The airline industry or ours. At least the airline industry was smart enough to know they had over-capacity and cut it back. When was the last time anybody flew on a plane that was less than 3/4 full? The insurance industry has yet to learn this simple fact.
Well said!
A cheap and abundant supply of money has caused interest rates to plummet and that causes people to look for a better deal now that their current investments are earning less.
So I think that speculative money is flowing where the perceived retuns are the highest so right now, and the smart money is betting on insurance for the next year or so to achieve their investment expectations.