By Brian Hunt in DailyWealth:
Traders take note... our supertrader colleague Jeff Clark is preparing to bet on lower prices for banking stocks.
In his terrific essay "The Government's Next Scapegoat," Jeff outlined the current bear case for banks. With their insane bonuses and rising fees, banks have ticked off both taxpayers and the government. Profit-limiting regulations, less federal help, and lower share prices are on the way.
Jeff mentioned the S&P Financials Fund (XLF) as a way to trade lower bank prices. This investment fund is a basket of big financial companies. As you can see, XLF enjoyed a huge rally in early 2009. That rally however, has stalled...
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