Brompton Lifeco Split Corp T.LCS

Not so obvious

[Kadiddelhopper]

to me at =least. Why are the Lifeco's suddenly the place to be as opposed to the big Financials as in Banks and Financial Credit Houses? At least they have Credit risk and possible Losses that need to be accounted for in the coming recession... But why the Lifecos doing well.?...is everybody and his Mother suddenly buying a Life Insurance Policy.....against a Recession and its circumstance?   Enlighten me please as to this  turn-around.

[Kadiddelhopper]

sist explained it on the LFE board staing the boon to Lifeco's because of increased interest rates, helping their quarterly results.

[Inglewood]

I found this article useful for your question: https://www.morningstar.com/articles/1122860/how-rising-interest-rates-affect-financials-stocks

[Kadiddelhopper]

Good Article...Thanks!

[mouserman]

Pretty simple, lifecos are not in the busy of giving out loans , and then when things go sour, due to high interest rates, make provisions for losses. Different animal, but still a financial stock. LCS is  still not back to the stock price of a year ago, and  the holdings have had pretty stellar results in the past Q , compared to most of the banks. Exactly a year ago  LCS was

[Kadiddelhopper]

Like the simple clarity as a reason..... should have hung-on to my $5.37 LCS...maybe there will be a chance once again with a turbulent March. wonder how hard a reach for LFE to start gaining some respect?

[mouserman]

Will be interesting to see the LFE unit nav in the next week or so , when the Quadravest report comes out. I think LFE still about 40 cents short of the mark.... but gains again today, at least from the big 4 cad lifecos.

[Kadiddelhopper]

MM... looking at Price History in Barchart, and see that last year, LCS held and agained some thru March 2022, but then in April began its downward trend to the end of 2022 before finding its footing recently. What would have caused it to slip-slide downward starting in April 2022, I wonder... do you have a sense on that? ...... just trying to determine cause and effect and the patterns to be

[mouserman]

It was my view that the lifecos were seen as a poor investment because of their exposure to the pandemic. Once that fear subsided now that most believe the worst is behind us , the lifecos were oversold. Simply returning to a proper valuation given the earnings.