At the beginning of each quarter, we rank each sector from best to worst with our Sector Ratings Report. The following is our analysis of each sector for the third quarter of 2020.
The Financials sector ranks third out of the 11 sectors as detailed in our 2Q18 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
The Financials sector ranks fifth out of the ten sectors as detailed in our 4Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
The Financials sector ranks seventh out of the ten sectors as detailed in our 3Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
The Financials sector ranks sixth out of the ten sectors as detailed in our 2Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating
The Financials sector ranks seventh out of the ten sectors as detailed in our 1Q16 Sector Ratings for ETFs and Mutual Funds report. It gets our Dangerous rating.
Year to date, Bank Of America (BAC) stock is up nearly 45% compared to the S&P at +about 8%. BAC stock has bounced back nicely after dropping precipitously at the end of last year.
I would call the 45% bounce a “dead cat” bounce because I expect the stock to fall right back to $5/share, where it bottomed last Thanksgiving, or lower.
The Financials sector ranks last out of the ten major sectors as detailed in our sector roadmap. It gets my Dangerous rating, which, like my fund ratings, is based on aggregation of stock ratings for each of 563 companies in the sector. The Financials sector is the bottom of the sector barrel.
Do not be fooled by the recent stock market run-up. Think of it as a set-up for a fall. Investors need to protect their portfolios from the eventual economic decline that will stem from the euro debacle.