The U.S. financials sector has continued to trade higher year to date, with double-digit sector wide increases seen since January 1 for most major financial institutions following the Trump election.
While many of the programs and promises intended to be put into place by the Trump Administration have yet to pan out, and investors remain conflicted as to how much credence to put into the campaign promises made by President Trump, expectations remain optimistic that many of the growth and deregulation initiatives the Republican party has promised will go through in the near-term, sparking a continued rebound in the financials sector in the U.S. market over the next three years.
Regulation reduction, lower taxes and public investment are three pillars of the proposed agenda Trump has been unable to push through; with the Administration expected to push legislation through on all three fronts by the end of the year, 2018 could potentially be a very solid year for financials.
As such, investors interested in gaining exposure to this sector should take a look at the Financial Select Sector SPDR Fund (NYE:XLF) for a well-diversified portfolio of U.S. financials stocks.
With the U.S. Federal Reserve expected to continue to hike interest rates (which will be a net positive for the sector overall), regulations potentially being reduced, and sentiment improving among investors and analysts alike for most major financial stocks, a broad rebound will pay handsomely for an investor looking at an ETF such as the Financial Select Sector SPDR ETF.
Invest wisely, my friends.
