It’s starting to make a run, but gains have been difficult to come by this year in the financial sector.
Financials is the second-worst performing sector of the S&P 500 — just in front of energy.
Its recent run could turn things around, but those gains may be elusive until the economy shows a strong indication of rebounding from the coronavirus pandemic.
That pandemic pushed the U.S. economy into a recession as thousands of businesses were forced to close and millions of Americans were laid off or furloughed due to lockdowns.
The S&P 500 Finance Sector SPDR ETF (NYSE: XLF) — an exchange-traded fund tracking some of the biggest financial stocks — jumped more than 41% since reaching a low in March 2020.
But it’s still 19% off its previous high set back in mid-February 2020.
XLF covers companies ranging from Berkshire Hathaway Inc. (NYSE: BRK.B) and JPMorgan Chase & Co. (NYSE: JPM) to Northern Trust Corp. (Nasdaq: NTRS) and Synchrony Financial (NYSE: SYF).
The ETF has a 50-day moving average that’s $1.50 below the 200-day moving average. What’s more is the financial sector is down about 20% while the S&P 500 is up close to 6%.
For comparison, the tech sector is up around 14%.
Financial ETF Struggles to Match Highs
In this episode of The Bull & The Bear, host Matthew Clark talks with Money & Markets Chief Investment Strategist Adam O’Dell about three finance sector stocks.
They’ll examine what each of these three companies do and how they’ve performed recently.
What’s even better is you’ll get insight on what you should do with these three companies — if you are thinking about buying or already have them in your portfolio.
Remember, knowing the data and the details about a specific company helps you determine whether it is worth investing in.
That’s why we do the work for you by looking that these specific stocks and give our analysis on each one.
The Bull & The Bear
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