Financial Stocks Are Unattractive

Aug. 16, 2021 3:49 PM ET, , , , 4 Comments
George Dagnino
854 Followers

Summary

  • The business cycle is turning down.
  • Commodities and interest rates are declining.
  • Financial stocks are unattractive in this environment.

Looking directly up at the skyline of the financial district in central London - stock image
Nikolay Pandev/E+ via Getty Images

Since March 2020, the beginning of a new business cycle, financial stocks have provided solid return +78% (S&P 500: +73%) as shown in the chart below.

Utilities (XLU), staples (XLP), healthcare (

This article was written by

854 Followers
George Dagnino. Economist -- Investment strategist -- Portfolio manager – Author - Editor of THE PETERDAG PORTFOLIO STRATEGY AND MANAGEMENT on www.peterdag.com. Complimentary subscription is available.Nationally recognized speaker on business cycles George Dagnino, Ph.D. is the former Chief Economist and Risk Manager for a major corporation where he managed $4 billion of interest rates and currency hedge portfolios. The Economist Intelligence Unit (London) wrote an article about his unique and successful approach to managing risk (interest rates and currencies) using derivatives. Dr. Dagnino is 1989 market timer of the year (Source: Timer Digest) He is also the author of three books: *** "PROFITING IN BULL OR BEAR MARKETS," published by McGraw-Hill, available in Asia in several editions from McGraw-Hill Education. *** EASY WAYS TO BEAT THE MARKET WITH ETFs *** INVESTING WISELY, IT EASIER THAN YOU THINK He taught MBA courses business and portfolio management. He has a Ph.D. from Case Western Reserve, Cleveland, Ohio. He is also an internationally recognized speaker and lecturer to many AAII investment groups, hedge funds, Europe, and China.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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