Financial and real estate exchange traded funds (ETFs) headed south after Federal Reserve Chairman Ben Bernanke said the mortgage crisis was going to continue.
With that, he urged lenders to lower their loan amounts and help distressed homeowners. Even with the relief efforts already in place, he said, the problem will still exist for awhile longer, reports Jeannine Aversa for the Associated Press.
Bernanke’s suggestion might not appeal to lenders, though, who are reluctant to write down principal.
What will it take to right this ship? As long as the market appears to be headed toward a recession, many financial and real estate ETFs will continue to feel the pinch, including:
- iShares Dow Jones US Financial Services (IYG)
- Regional Bank HOLDRs (RKH)
- iShares Dow Jones US Real Estate (IYR)
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.