MarketWatch has an interesting article today about homebuilder and financial ETFs. The article, titled "Analysts say financial, builder ETFs signaling buy," interviews a couple of leading analysts who feel that both sectors have bottomed out and are "screaming buys."
Morningstar analyst Sonya Morris said that the Financial Select Sector SPDR (AMEX: XLF) is trading "at least 25% below what Morningstar thinks they are worth."
MarketWatch said in the same article, "Most of the analysts agree that valuations are attractive right now in the financial sector. They said that once the sector gets past the problems with the subprime crisis, probably by the end of this year, the shares could move fast."
I think these analysts are probably right, but that we're probably not through going down in the short term.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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