Editor's note: Folks are willing to pay up for peace of mind. And according to Pete Carmasino, chief market strategist at our corporate affiliate Chaikin Analytics, that's why one key subsector is so vital to our economy... and our everyday lives. In this piece, most recently published in the March 26 issue of the Chaikin PowerFeed daily e-letter, Pete explains why this subsector is so profitable – and why investors should be paying attention right now.

When Craig called his insurance agent, he didn't know his home was about to burn down...

But it's a good thing he trusted his gut.

You see, Craig had just bought an electric vehicle ("EV"). And he needed to install a charger at his home.

Incidents of home fires from EV-charging mishaps have made headlines over the years. That was one of Craig's biggest fears with his new purchase.

In reality, EVs are more likely to catch fire on the road after an accident damages the battery. It doesn't happen with a charger at home as often as Craig thought.

Still, the possibility weighed on Craig's mind. He and his wife, Cynthia, had just spent $45,000 for new siding on his Colorado home. So he wanted to make sure his home-insurance policy was in order.

Craig isn't alone, of course...

A home is many Americans' largest asset. Plus, it holds just about everything they own.

The thought of a fire is scary. But the fear of "losing everything" is even worse.

However, as you'll see today, that's good news for investors – because one sector profits by providing peace of mind...

Craig's insurance agent told him that his house already had more insurance coverage than it needed. And the agent offered to trim down Craig's policy to lower his required payments.

Fortunately, Craig declined. After all, he had called with safety and protection on his mind. That's what he wanted. And he stuck to it.

Think about that for a second...

Craig prioritized "peace of mind" over saving a few bucks each year.

Two days after that phone call, Craig's house burned down in the historic Marshall Fire. In terms of buildings destroyed, the late-2021 fire was the most destructive in Colorado's history.

If Craig had reduced his insurance coverage, he would've gotten less money after losing everything.

Craig's story reminds us that nobody can afford to lose everything in a fire. So it's clear that property and casualty (P&C) insurance companies play a vital role in our daily lives...

Insurance Stocks Will Always Be a Reliable Investment

Insurance companies are a critical part of our financial system. And no matter how things play out in the economy, that won't change. We'll keep paying them for peace of mind.

Now, P&C insurers aren't like banks or regular financial firms. But they're among the world's most successful, influential businesses. And it all comes back to one key feature...

P&C insurers have easy access to "almost" free money.

This money doesn't come from the government or banks. It comes from America's top businesses, executives, and professionals. Construction companies, doctors, lawyers, financial institutions, and more will all keep paying P&C insurers for peace of mind.

That's a great reason to own insurance stocks. Plus, insurance companies are an especially good investment today, based on our research...

We can take a deeper look at this subsector through the Power Gauge system. That's the key set of tools we use at Chaikin Analytics. It combines several investment fundamentals and technicals... And it uses them to produce a simple, actionable rating – ranging from "very bullish" to "very bearish."

Today, the Power Gauge is "very bullish" on this subsector. In fact, insurance holds the top spot out of 21 subsectors. It's easy to see why when you look at its Power Bar ratio...

The Power Gauge tracks the insurance subsector through the SPDR S&P Insurance Fund (KIE). This is an insurance-stocks exchange-traded fund ("ETF"). And as you can see in the graphic above, something incredible is going on...

None of the 53 rated stocks in this insurance-stocks ETF hold a "bearish" or worse rating today. And our system is currently "bullish" or better on 31 of these stocks.

So if you aren't already paying attention to insurance stocks, I recommend you do so.

Good investing,

Pete Carmasino

Editor's note: Investor fear has hit extreme levels not seen since October 2022... and Chaikin Analytics founder Marc Chaikin expects more volatile days ahead for investors. That's why, last week, Marc stepped forward to share a brand-new investing strategy that could more than double your entire portfolio... even if the market continues to swing wildly. Click here to learn more.