Category: Financials

Is now the time to buy this beaten down sector? Or are more new lows headed our way?

Financials have been a top-performer since we last checked in on the sector.

You might have heard, but there was a bit of turmoil in the financial markets last month. Two S&P 500 banks were placed into receivership with the FDIC during March, driving Financials to the bottom of the barrel when it comes to year-to-date sector returns.

For months, we’ve been watching Financials and waiting for a breakout.

We think the Financials sector could be a top sector in 2023, despite its slow start. For months, we’ve been watching and waiting for a breakout from this multi-year consolidation range.

The Financials sector is one to watch closely, as it could be one of the best sectors in 2023. We’re maintaining our rating for now, but a break above the relative highs from 2021-2022 would likely spark an upgrade.

Financials are setting 6-month highs after breaking out above their August peak.