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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.