Time To Invest In Financial Mutual Funds
July 15, 2008
The stock market has been very scary for a while now but especially today. Friday night Indymac failed and the Feds steeped in to take over. I read people where lined up at the bank to take their money out. But here is the thing how far can all the big banks and financials go down? It might be time to start nibbling at some mutual funds or index funds that invest strictly in the financial sector.
This is a very contrarian play but it might be a good long term investment to pick up some mutual funds specialing in financial stocks. When you think about it all the banks can not go to zero or the United States will be a complete mess and no one will have money. The government is going have to step in and save all the banks. So looking at it this way pretty much all financial stocks are looking like great deals for long term investing. Mutual funds work great for this situation since they invest in lots of financial stocks. Some of the Janus funds that only invest in the financial sector might be a good play right now. It would be to risky to invest in individual bank stocks since you never know which ones will fail. But investing in a lot diversify the risk and should give you some nice long term gains.
Comments
Got something to say?
