Financial Select Sector SPDR (ETF) (XLF)

The financial industry has been beaten up with good reason. However I believe many companies have taken an unnecessary beating and it shows in the XLF. As the housing market improves and money flows back into the market we'll likely see the financial industry see a benefit.

Fingers crossed on the market crash

Financial (will recover, gov. protects the big ones, DRF is international)

Financials, while still risky at best, will bounce back in the long term.

US Economy needs financial services. It is a necessary function in any economy. So the inherent value of the right to provide these financial services to the US Economy has not changed.

Our GDP has not decreased 85% and thus the value of providing financial services to our economy has not decreased by 85%. Sure most of these firms should have been left to fail, and the "smart money" should have been allowed to take over the financial services function, but that did not happen. Our govt sent them a lifeline and they will be allowed to recovered. Some will fail, but the rest will only be stronger due to less competition.

Simply passing the Stress test has given many of these companies a boost. Now, while their costs remain amazingly low, the margins on the assets and loans that they serve will continue to drive a cashflow positive business. This SPDR is uniquely suited to recoup tremendous gains from those banks strong enought o survive the financial services downturn.

XLF will fluctuate in the short term but with interest rates going up and the banks cost at near zero...the increasing spread is all but insuring a significant run in the financials despite the higher than expected losses we will be hearing about soon.
If interest rates keep going up the banks will write down everything including the kitchen sink and still show a profit.

It's a fund so the risk is lower in financials. I don't know what banks will do well so i'm playing it safe here.

Financial stocks are not out of the woods yet. There still are one or two more skeletons in the closet, but in the long term the will outperform

so far, so good

Fading every pick made by Ultralong

etfscreener.com

The financial stocks are mixed, but this ETF has solid picks with well positioned companies such as GS and American Espress. This stock will blow up as soon as the banks starting making head way on profits. This ETF is one of the few that are affordable in this sector, where you can get exposure to big companies at an great price.

If the world economy is going to expand financials will need to extend credit (making money) to business. This will help banks recover and become profitable again.

READY TO SKYROCKET

Insolvent banks can't lie forever.

The booming financials are due for a pullback

This rally will fade, likely led by financials.

Citigroup is now recommending you buy Puts on... Citigroup (and every other large bank).

Rally is over