The much maligned financial industry has definitely seen its share of ups and downs over the past two years, as a mortgage meltdown, bailouts, Congressional hearings, and rage from Main Street have battered an industry that once seemed indestructible. Despite the ill will towards Goldman Sachs, many financial firms have put this dark period behind them, as banks both large and small have posted estimate-beating earnings and revenues and continued to claw back ground lost since late 2008. These bullish reports have caused financial ETFs to surge as of late; the iShares Dow Jones US Regional Bank Fund (IAT) and SPDR KBW Bank ETF (KBE) have seen their shares soar by close to 25% this year as calm finally began to return to the banking sector (also see Financial ETFs: Seven Ways To Play). [click to continue…]
ETFs were originally embraced by buy-and-hold investors as an optimal, low-cost vehicle for inclusion in a long-term retirement portfolio. But in recent years they have become popular among more active traders who value their liquidity and efficiency in providing exposure to various asset classes. Once used primarily by beta grazers, ETFs have become a favorite [...]
After generally impressive earnings reports sent markets higher for much of the last week, Friday’s shocking allegations against Goldman Sachs ensured that the week ended on a down note. The SEC filed fraud charges against the Wall Street giant on Friday, alleging that the firm failed to make important disclosures surrounding a subprime mortgage product [...]
After sweeping into power last year, democrats have fallen on hard times. Approval ratings are slipping across the board and several incumbents are vulnerable heading into mid-term elections. The latest blow came from Senator Chris Dodd, the Chairman of the powerful Senate Banking Committee, who announced that he will not be seeking reelection later this [...]
Over the past year, the financial sector has been a favorite target of criticisms, frequently accused of outrageous greed that sparked the mortgage meltdown in the U.S., eventually spreading to nearly all corners of the global economy. Moreover, the volatility of financial companies has skyrocketed, perhaps best evidenced by the fact that Direxion’s 3x leveraged Daily [...]
