While the financial industry in particular continues to get negative press, advisors and analysts are saying that the two sectors are "a screaming buy." The Financial Select Sector SPDR (XLF) has been in turnaround mode since ending 2007 down 19.2%. Since Jan. 22, it’s up 13.2%. The iShares Dow Jones U.S. Home Construction (ITB) is up 25.3% since the same date.
Last year, all of the financial sector ETFs fell by double digitals, and Morningstar analyst Sonya Morris feels they’re trading 25% below what they’re worth. Many analysts feel that once the subprime crisis passes, the funds could take off.
Meanwhile, Zack Miller for Blogging Stocks isn’t completely convinced that we’ve hit the bottom.
What do you think?
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.