Buy Financials on this Dip!

Most, if not all economy indicators are pointing to a recovery. Even a shocking event like Dubai World defaulting on their loans, is not strong enough to jolt the market from their uptrend. This proves the strength of the market. The lingering unemployment issue in the US is also seen to be stabilizing and employment rate will be ticking up gradually.

Most US banks have returned their TARP loans, except for a minor glitch recently by Citibank, that pull the financial stocks down yesterday due to the cold response to its new stocks, but this is Citibank, the worst hit bank by the financial crisis, and a bank that is still majority held by the US government, and with the fact that the government is looking to sell all their current holdings, the market will not be big enough to absorb all of this, and Citibank stock price will remain under pressure for a long time to come.

I do not see anything wrong with the other US banks, and with the recovery, financials will be the first to ride the bull. Include some financials into your portfolio, and I believe this few weeks will be a good time to do so.