This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Quick Take: Going Heavy on Financials

NEW YORK ( TheStreet) -- Stephanie Link, the co-portfolio manager of the charitable trust Action Alerts Plus she runs with Jim Cramer, told TheStreet's Lindsey Bell more investors are rotating into the financial sector.

Link believes that it is very encouraging to see the financial sector lead the markets higher because it shows that the economy is actually growing. She also thinks if the financial sector can continue at this pace, the broader markets go "another leg higher."

With "rates starting to rise and the steepening of the yield curve, these companies will become much more profitable," she told Bell.

Asked which financial stocks to put your money into, Link told Bell investors should stay diversified. The financial sector is big and therefore gives you plenty of room to diversify your holdings between regional banks, insurance and credit cards, she explained.

Specifically, Link mentioned JPMorgan Chase (JPM - Get Report) because it has underperformed its peers for the year to date, in part because of the criticism of CEO Jamie Dimon.

But with that over now, she believes that the stock will begin to "play some catch-up."

She also likes Wells Fargo (WFC - Get Report) for its positive operation leverage, as well as KeyCorp (KEY - Get Report) and Hartford Financial Services (HIG - Get Report). JPM, WFC, KEY and HIG are Action Alerts holdings.

Asked about other names on Link's radar, she told Bell that while they seem overbought now, Discover Financial (DFS - Get Report) and American Express (AXP - Get Report) are on her watchlist.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AXP $77.23 0.00%
DFS $59.49 0.00%
HIG $42.09 0.00%
KEY $14.21 0.00%
JPM $63.24 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs