The Market Is Down in 2022, but This Forgotten Industry Keeps Going Up
It's been a tough year for investors, with the S&P 500 index down 15% since the start of the year. Despite weakness in the market, one industry is holding up quite nicely: insurance. This year, the SPDR S&P Insurance ETF (NYSEMKT: KIE) is up nearly 5% at a time when market volatility and rising interest rates have weighed on many other stocks.
While insurance isn't the most thrilling industry, it is a necessary business that can be a great source of cash flow. This cash flow is a big reason Warren Buffett loves owning insurance companies, which have been a pillar of his success over 57 years at Berkshire Hathaway.
There are other reasons to love insurance stocks. These companies are a natural hedge against inflation and can do well in higher interest rate environments. Let's dive deeper into why insurers can make for excellent investments.
Source Fool.com
