October is a notoriously poor month for stocks and bears are readying for an overdue market selloff. Whether this happens remains to be seen. Potential increased regulation in the financial sector will also create uncertainty for investors. Meanwhile, Barclays Capital has claimed improvements in liquidity has encouraged risk-taking and contributes to the market rallies.
If you’re considering investing in capital markets, have a stop loss in place.
- iShares Dow Jones US Broker-Dealers (NYSEArca: IAI): up 44.3% year-to-date; expense ratio of 0.48%
- SPDR KBW Capital Markets (NYSEArca: KCE): up 43.6% year-to-date; expense ratio of 0.35%
For more information on the financial sector, visit our financial category.
Max Chen contributed to this article.