Beware, Financials Are Going Their Own Way

These should be good times for the financial stocks. First, we entered the week with all three major indices at all-time highs -- and a rising tide tends to lift all boats. Second, with the next meeting of the Federal Reserve drawing near, we could be on the verge of another rate hike. While rate hikes aren't a positive for stocks, they're less negative for the financials than for other sectors.

It's unusual to see the major indices and the financials diverge, yet that is exactly what is happening right now. The following chart compares the S&P Select Financial SPDR ( (XLF) , red), a bellwether for the financial sector, to the SPDR S&P 500 ETF ( (SPY) , green) since March 1....377 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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