One Way Into the Financial Sector
The most beaten-down sector is the financial group. Last week the sector sparked a market rally when it refused to trade lower off a bad earnings report out of Goldman Sachs (GS) and a better-than-expected report from Bank of America (BAC). The large money center banks rose more than 7% from those morning lows, and now there is talk about whether this sector is finally ready to roll over.
Even with this rally, the Financial Select Sector SPDR (XLF) is still down almost 19% year to date, so there certainly is room for a rally, but you don't have to limit yourself to domestic money center banks. There are other areas of the world where the charts of financial concerns look much better. One such foreign firm is Creditcorp (BAP), which is based in Peru. Unlike most financial companies, Creditcorp is actually on a serious growth curve, with earnings growing at an even faster clip....385 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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