Broker-Dealer ETF Feels Financial Sector’s Pain

May 27, 2008 at 11:00 am by Tom Lydon      Bookmark and Share

Investment Since the Bear Stearns (BSC) collapse earlier this year, the broker-dealer exchange traded fund (ETF) has been getting kicked up and down.

Year-to-date, the iShares Dow Jones US Broker-Dealers (IAI) is down 23.6%. It’s been trying to make a comeback, though: since hitting its 52-week low on March 17, it’s up 14.1%. However, it’s got a ways to go, as it’s sitting 14.5% below its 200-day moving average.

The struggles of the financial sector are not exactly a surprise, since much of this year has been full of news of analyst downgrades and massive writedowns. Billy Fisher for The Street says that investment banks still have some mountains to climb before the stock prices will recover.

Long-term, some analysts think that while there’s still growth potential in the sector once it turns around, there’s still going to be some near-term volatility. While this sector continues to iron out the kinks and find its footing, wait it out until the fund crosses its trend line. If you’re really itching to get in, using the 50-day moving average as your entry/exit point is a short-term option you have.

Z_3

Share this post:
  • email
  • Yahoo! Buzz
  • Digg
  • del.icio.us
  • Tipd
  • Reddit
  • StumbleUpon
  • Facebook
  • Technorati
  • Google Bookmarks
  • TwitThis

Tags: ,

Subscribe to Our Daily E-mail Newsletter

Enter your e-mail address below to sign up for our daily e-mail newsletter, the Daily Market Update. We will never share your e-mail address with third parties.

Subscribe to Our RSS Feed

Click here to subscribe to our RSS feed

blog comments powered by Disqus
Special Report

Recent TV Appearances

Now Available:

The ETF Trend
Following Playbook

ETF Trends' new book is now available. Click here for details. Or order online from one of these bookstores:
Amazon        Barnes and Noble


iMoney

ETF Trends' book iMoney is available. Click here for details. Or order online from one of these bookstores:
Amazon        Amazon