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.

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