Home » Bear Case Scenario » Bear Case Scenario Travellers $TRV, $L. $CB, $ALL, $TKOMY, $ACE

Bear Case Scenario Travellers $TRV, $L. $CB, $ALL, $TKOMY, $ACE

Travellers Insurance (NYSE:TRV) is about to announce the latest earnings results. Consider this bear case scenario as you ponder management comments. A surprising significant part of the company’s investment portfolio is in municipal securities. If municipalities default on a large-scale, Travelers will face impairment or loss on these investments. How’s Detroit doing? Travelers’ products are commodities, leaving it only able to compete on price.

George Gutowski writes from a caveat emptor perspective.