Financial Select Sector SPDR (ETF) (AMEX:XLF)

A little late on this one. I still think Financials will outperform from here, though. High yields on most of the stocks here and with rates going down they will attract capital.

The actions required to repair the damaged banking industry have begun. Profits will be hurt for a while, as debt creation will be limited for a long time. None-the-less, we in the process of making a bottom, and this ETF is a good core holding.

worst may be over

Long on a recovery....

The financial stocks have been beaten up, but won't stay down for long. Buy now whiile they're discounted.

The Finanacials have bottomed. Now is the time to start picking. The XLF is a great place to start. Individually, I like Citi (c).

Most people like Goldman Sachs, but this stock scares me. If for some reasons they have subprime mark downs to report, this stock is going to tumble, and tumble hard; Since a built in premium is already in the stock.

My prediction: The whole financial sector is being hit by the sub-prime loan defaults, overly aggressive risks, etc., and this will reverbrate through the economy for at least a couple of years (Europe and other parts of the globe are already experiencing this). This will contribute to the dollar's decline (and the inverse rise in non-U.S. currencies - the Euro, Canadian "Loonie", Yen, etc.) and will exacerbate the already difficult U.S. economic problems on a wider scale. I am very pessimistic regarding this sector.

Multiple oversold components. In 20% at $31.40

Everybody is throwing away financial stocks. I believe that the public is always wrong therefore, it is time to start picking them up. XLF is the easiest way to start with the shotgun approach. Later on you can pick individual stocks. Keep adding to your position every 5% or so drop. It will eventually bottom out and then everybody will wish they had jumped in.

Its time to get bank into financial services - especially if you are a long term investor. This ETF is mainly big financial companies and they have good international exposure.

The financials are so value priced that when they begin to grow no one will belive you could have bought them for a 7 or 8 pe!

Excellent holding in the Financial Market, which will benefit from the rate cut. An excellent ETF, with strong volume.

Simple math - drop ion rates = good for financials. This pick will profit from the drop in rates but will not be tied down to any one financial stock, as it is an ETF in this space.

burn baby burn

Great way to play the financial sector. The sub-prime impact seems to be leveling off for the moment.

The financials are lagging due to the subprime slime....but brokers are going crazy and business is good with the market going up up up. Also, when the fed cuts rates and bails out the housing slump the the financials are going to be smoking the market. They normally lead the market and the next few months you are going to see a lot of momentum. BUY BUY BUY

Like any other member of the Select Sector exchange-traded fund family, Financial Select Sector SPDR (XLF) carves out specific sector's stocks from the S and P 500 Index. Widely known XLF, invests in a wide array of financial service firms with diversified business lines ranging from investment management to commercial and investment banking.

With 87 companies making up for the portfolio, the fund looks well diversified, with prime holdings being Citigroup, Bank of America, American International Group and JPMorgan Chase. Endorsing the performance by the constituents, the fund is coming off an incredible run, gaining nearly 11.7% annualized for the last three-year period. Its one-year return for 2006 has been 18.84%, owing to recent consolidations in the industries giving way for investment banking requirement and a high credit take-off in the emerging countries. Its 0.24% expense ratio also is the cheapest among its traditional and exchange-traded peers.

Neither an inverted yield curve, rising interest rates, nor a weakening U.S. dollar could keep financial services stocks from solid gains in 2006. On the same lines, the worldwide market for financial services is evolving rapidly and, by 2010, it is expected that the industry size will grow manifold as compared to current scenario.

As it is anticipated that, Federal Reserve will be cutting off interest rates in 2007, a high credit off-take is being expected. Encashing the same, finance company’s stocks could rebound, helping to drive the market higher. Going further, the ongoing development in emerging countries as well as consolidations taking place in almost all the industries should continue to buoy this fund's holdings.