Chad Morganlander, portfolio manager at Washington Crossing Advisors, “also recommends that investors go underweight regional banks, as he does not see the Treasury yield curve — the spread between the 2-year and 10-year Treasury yields, which can often impact the health of banks’ balance sheets — steepening meaningfully over the course of the next few months,” according to CNBC.
KRE has been prone to bounces when it becomes oversold, a scenario that showed signs of appearing Wednesday, but those bounces have not been sustained this year, indicating investors should not be fooled by just one day of positive action in the fund.
Year-to-date, investors have added $822.54 million to KRE.
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