Those who clung to their financial stocks may be the ones grinning as financials and their related exchange traded funds (ETFs) pick up momentum in 2009.

The Financial Select Sector SPDR (XLF) has fallen 2.2% after the overnight lending-rate target was cut to nearly zero on Dec. 16, reports Jeff D. Opdyke for The Wall Street Journal.

But a financial bounce back could be in the works as some managers dumped holdings for year-end reports and a few booked losses to offset capital gains in preparation for tax season.

The exorbitant profits from debt securitization is no longer possible and it is looking like emerging-market, iShares MSCI Emerging Index Fund (EEM), countries such as India, China and Korea (ICK countries) are showing the best earnings growth.

The current bear market has lasted well beyond the point with which common sense dictates, writes Steven T. Goldberg for Kiplinger.

Goldberg speculates that the current bond market, iShares iBoxx $ Invest Grade Corp Bond (LQD), could experience returns of 30% or 40% in the future. Goldberg suggests that investors keep a hefty percentage of their stock money in large-cap,  Vanguard Large Cap ETF (VV) or iShares Morningstar Large Core Index (JKD), high-quality companies.

As you shop around, take a moment and pause to ponder over these ETFs and maybe a few others when compiling an effective portfolio for 2009.

But no matter what the experts predict, predictions have a funny way of being wrong a lot of the time. While it’s fun to guess, be sure to stick to your strategy and enter only when these areas move above their 50-day or 200-day moving averages.

Tags: Asia, China, Corporate Bonds, EEM, Emerging Markets, Financial, India, JKD, Korea, Large-Cap, LQD, Sector ETFs, VV, XLF