A few weeks ago, the Fed lowered interest rates making money available and more affordable for banks and lending institutions, many of them under a dark cloud after the "sub-prime" debacle.
The financial sector has been beaten up in the stock markets and several of these companies are poised for a rebound.
A chance to take part on the positive move is buying into a Specialty - Financial ETF such as KBE.
KBE's major holdings include Bank of America (BAC), Bank of NY Mellon (BK), Citigroup (C), J P Morgan Chase (JPM), Wachovia (WB) and Wells Fargo (WFC) to name a few.
KBE is trading today at about 54.00 per share, average volume near 1 million per day, dividend was 5.28% (as of 6/30/07), and has an expense ratio of .36%; its inception date is 11/8/05.
A new investment vehicle for me, I'm willing to give it a try.
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