Marketwatch Commentary: Should We Copy Bank Shares Now?

Beijing time November 1st, MarketWatch published the topic entitled "copy the bottom". Bank shares Is the timing coming? "

In the past few months, the low buying speculators and the market reverse. Investment People keep a close eye on banks and Finance The service sector believes that the share prices of financial services such as banks should rebound.

The 115 - year - old Dow Jones Industrial Average was the best in October, thanks to the rebound of financial stocks in October. At that time, speculators believed that European leaders would come up with a solution to at least temporarily solve the debt crisis in Greece and other European countries. This is enough to make ordinary investors think about luck in finance. Mark, who is from the Tulsa city of Oklahoma, this week, focused on the idea of ordinary investors in an email. He said, "if I want to bet on financial stocks, what will be best exchange traded funds or Department funds?" this is a good question, but he will not necessarily like the answer to the question.

For those who want to be confident of becoming short-term speculators in the financial services sector, the fund may not be the best answer. In fact, many fund portfolios have more exposure than investors can realize. Since the 2008 financial crisis, most investors have been dissatisfied with bank shares, and the current rally is encouraging. Few people would think that the European debt settlement agreement means that the financial situation is out of the woods. On the contrary, the market feels like a dodge. Investors who can find the potential of financial stocks usually only talk about the names of several companies, the balance sheets of financial departments and their prospects.

Goldman Sachs, Citigroup or bank of America often become the headlines of the big media. If only a small number of financial stocks can stimulate your interest, direct purchase may be more meaningful than holding a fund.

By selecting funds, investors are taking large amounts of troublesome people and interesting names. There are different funds in the same sector. In addition, various financial services funds also have great differences. On the whole, the trading open index fund in the financial industry is still very worrying.

Editor of No-Load Fund Investor investment newsletter and The Investor s ETF Report editor (Salzinger Salzinger) advises investors that there is no need to go all out to the financial industry. He also pointed out that, like the Vanguard Mega Cap Value fund, about 22% of its financial assets have high financial sensitivity. In addition, he suggested that the preferred way of stock trading open-ended index funds could be very suitable for "conservative investors who want to be a reverse investor". He pointed out that the important preferred stock ETF, such as iShares S&P U.S. Preferred Stock Index Fund (PFF), held more than 80% of its financial shares and its yield was about 7%.

Sang said: "investors should keep in mind that if financial stocks rise, the prices of other industries may also rise, and there is no attractive reason to buy a pure financial stock ETF. It may be better to buy a diversified ETF, quite a portion of it is financial stocks. " So is it time to buy bank stocks? Not necessarily. It is necessary to check the shares held by the fund's portfolio before buying.