The markets haven’t exactly been kind to “growth” sectors in recent months. Fears about dropping global growth, falling oil prices, China tumbling into the abyss and other worries have begun to cause a big time sell-off in the markets. In fact, we’re off to one of the worst starts since the 1950’s for domestic stocks.
And while everything is down, some defensive sectors have fared better than their faster growing or economic dependent twins. Tech and materials shares have given way to consumer staples and utilities as investors have shifted their portfolios.
However, in the shuffle to get defensive, financial stocks have gotten thrown out with the bathwater.
Since the recession, the sector has worked hard to restore balance sheets and regain much of the "rock solidness” that helped it weather economic storms before. And yet, the group still has plenty of long-term growth potential.
What’s left for investors is a great combination of value and progress in one ticker. Not to mention large, growing dividends.