Financials: From Pariahs to Producers
Clearly, if there has been one obvious market pariah in the past few years, it has been the financial sector. The carnage wrought in 2008 through early 2009 was closely related to the meltdown of the big banks. The financials were also conspicuously weak throughout 2011 and were negatively affected by fears of a euro collapse last year and occasionally in 2012.
To us, that has been part of the opportunity. Financials have been unloved -- "hated" might be a better term -- and that emotion has obscured the reality of business recovery. The institutional investment community continues to be significantly under-invested in this group. Amid all of the negative headline risk and financials' subpar performance since 2008, the market has adopted a mind-set that there is no urgency, in fact, no compelling reason to own them....504 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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