Markel will not remain cheap forever!
Interest rates are going up again! These are the most recent news!
Even as central banks are flooding the market with money and especially as the Fed tries to keep long term interest rates down the interest rate curve gets steeper.
The 30 year US bond is already yielding 4,60%, the 10 year treasury bond yields 3,54%.
This means that fixed income investors are able to earn interest income again while watching carefully the duration of their portfolio.
This in general is good news for insurers as they invest most of their „float” in the bond market.
So it is not astonishing that recently the stock market blew a little breeze of life in the stock of insurance and master investment company Markel Corporation (NYSE:MKL).
This could be a promising sign that finally in 2011 this insurance stock will return to the favor of investors.
So be prepared: This stock will not remain cheap forever!