Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

If there is one sector that has been making the most out of the surprise Trump election win, it has to be the financial sector. Stocks of banks, insurance companies and asset managers have gone gangbusters since November.

The sector – as represented by the Financial Select Sector SPDR Fund (XLF) – is up a staggering 21% since the election.

Those gains have been driven by the promises made by the Trump campaign to end pieces of recession-era regulation. The continued rise in benchmark interest rates hasn’t hurt either. With these two points, the financial stocks certainly have the wind at their backs.

With financial stocks being up so much only on promises and no real policy action, are investors banking on too much from the sector? Have we put too much faith in the future to the point where financial stocks may have overextended themselves?

Plenty to Celebrate… to a Point

After imploding during the recession, the major banks and financial stocks spent much of the last seven years or so treading water. All of that changed when two of the major catalysts holding them down were removed.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Untitled%20design%20%2840%29
News

The Market Wrap for November 24: Markets Rally Ahead of Thanksgiving

Markets finally shrugged off concerns about the proposed tax legislation this week after House...

News

Trending: Cisco, Home Depot, Walmart & Nike Rally After Earnings Beat

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...

Dividend Investing Ideas Center

5 Dividend Stocks With Exposure to AI

Artificial Intelligence (AI) represents one of the biggest paradigm shifts in human history. By...