Deregulation could also help the financial sector improve their margins. President Donald Trump has shown its eagerness in cutting back the red tape and remove some of the post-financial crisis regulations that has stifled the industry.
“With the Senate having sent the tax bill to the floor for debate, money managers are trying to position themselves should the legislation pass. Regional banks in particular will be winners, according to Walter Todd, chief investment officer at Greenwood Capital Associates,” according to Bloomberg.
Risk-tolerant traders who want capitalize on the short-term volatility have a number of leveraged and inverse ETF options to enhance potential returns. For instance, the Direxion Daily Regional Banks 3x Bull Shares (NYSEArca: DPST) can capitalize on short-term views on further strength in the financial sector, or the Direxion Daily Regional Banks 3x Bear Shares (NYSEArca: WDRW) can express short-term hedge of the opposite.
For more information on the financial sector, visit our financial category.