NEW YORK ( TheStreet) -- Financial stocks have taken a beating all year, and the recent period of market volatility has been no exception.
From the Aug. 3 close through Wednesday, the Financial Select Sector SPDR (XLF), a widely-followed exchange-traded funds that tracks the financial sector, has fallen 15.46% versus a 9.92% drop for the Dow Jones Industrial Average during that same time period.
As a result, it may make sense to add financial stocks to your portfolio, though if you are concerned about volatile markets, that presents a challenge.
Goldman Sachs made several changes to its "conviction buy" list in light of the recent market volatility, and has added some names it expects to benefit, while also upgrading other stocks that did not quite make the "conviction buy" list."Market volumes and volatility have picked up dramatically over the last few weeks, which should lead to upside estimates for 3Q for a number of companies," states a report published Thursday. The group is comprised entirely of market structure and exchange stocks, which, according to Goldman's report are "direct beneficiaries of the recent volume surge and any continued volatility in various equity and fixed income markets." Goldman's analysts note that they "do not expect elevated volumes to persist indefinitely," but, they argue, "various global/sovereign issues are likely to keep equities, rates, options, commodities, and