Dow Finished the Week Up

Published by admin | Filed under Finance Connect

While most days we have seen the DOW continuing to drop, it got a lift on Friday and went higher by almost 100 points. I think as the warm weather draws closer, we will once again see the DOW moving back up. The DOW is at 12, 381 and that’s a long ways from the highs of 14,000 that saw just a couple of months ago. It can be a good time to invest in stocks when the DOW is struggling to hold it’s head above water and the bargains on Wall Street are out there.

I think the banking stocks have become attractive and I am starting to lean to that part of the market now. I still like the big pharma companies and will continue to invest in those stocks, but the financial sector of the market is ready for a run. I think some of the credit card companies and banks will be the first ones to break out of this recession we find our selves in today. If you been looking at different financial stocks and just been waiting for the right time to jump in, I see now is a great time.

I think a lot of the banking stocks and financial based stocks may see a 10 percent increase over the next quarter. You might be able to see your returns just as the dog days of summer are arriving. I really don’t want to mention specific stocks at this point, because the market is still a little shakey right now, but the financial sector is always going to hold it’s ground well in times like these. Many of the financial stocks across the board have took sharp hits over the last 2 months and I think they might be done slipping. I see a few of the big banks and one or two of the credit card companies that look like they are ready to roll. Do your own research and see if you can see any financial stocks you might want to roll the dice with right now.

The banks do offer us guaranteed interest on those saving and checking accounts, but I think the bank’s stocks will bring in more new money; than just having them draw the little interest in the banks. The credit cards are going to be taking a sharp turn to the good, because more and more people will start to go outside and enjoy the warm days that are around the corner. If those days get too pretty and you haven’t found your financial stock yet; you might want to hold off with your investments. I think you should do real well over the next 6 to 10 weeks and buying up large sums of banking and credit card stocks to add to your portfolio. I think in 12 weeks from now, would be a good time to go back and see where the DOW and other indicators are at, to see which sector might look best then. So go look through a few of the big banks and some of the credit cards and I think you will discover the same thing I did. One bank and one credit card stock would be nice additions to your portfolio right now and I would even go as far to say that you have 25 percent of your total portfolio with 1 banking stock and 1 credit card stock. Don’t go over that 25 percent level and you will keep your portfolio diversified. If you already own a stock in banking or credit cards, now would be a good time to add new money to them. Good luck with the financial sector and be sure you just hang in there, because there are brighter days around the corner.