Goldman suggests buying Goldman


Trade idea #6 for 2014 from Goldman Sachs is a long position in large cap bank indexes in the U.S., Europe, and Japan. The ETF choice for the U.S. is KBE, while EUFN could work for Europe (better ETFs for European and Japanese banks trade in those markets).

Faster growth and a steeper yield curve should boost U.S. banks, while those parts of the Japanese economy particularly levered to consumer spending - namely housing and banks - should see support. Europe should see growth of just 1%, but this would be a significant improvement over 2013.

Goldman also notes bank valuations remain below pre-crisis levels and could see a boost as the overall risk-taking backdrop improves.

Other relevant ETFs: FAS, XLF, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, PFI, KBWB, RWW, FINU, RYF, PSCF, FNCL, FINZ, IAI

Previous ideas are here

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs