Do You Have Insurance?

Insurance is unavoidable. Car insurance is a legal requirement, homeowners insurance is a financial necessity, and life insurance is arguably the most important of all. For the most part these companies have a mandatory demand, and this demand is starting to show in the stocks. The Insurance ETF has been stuck in a multi-month consolidation and has formed a tight coil. Volatility is compressed, and when volatility contracts, it eventually expands. The prior two times we saw volatility expand after being this compressed, insurance stocks went on to rally for several weeks.

One name that’s caught my attention is Progressive. This stock is the largest holding in $IAK, but has been lagging the ETF over the past few weeks.

Allstate is another setup I really like. Very clean base, and a breakout above $215 targets $285.

What do you think about insurance stocks? Feel free to reach out and let me know your thoughts. As always, thanks for reading and blessings to all!

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