ETF Trends
06-23-2008, 07:30 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/06/23/wite_out_bottle.jpg Goldman Sachs & Co. admitted that it made a mistake in upgrading the financial and consumer discretionary sectors, putting related exchange traded funds (ETFs) back in a funk.
Seven weeks ago, the sectors were boosted by Goldman on the belief that they would benefit from bank recapitalizations and fiscal stimulus, something they now admit was "clearly wrong." The recommendation had been to overweight in consumer discretionary and maintain a neutral weight in financials, report Supantha Mukherjee and Dinesh Nair for Reuters (http://biz.yahoo.com/rb/080623/financial_research_goldman.html).
Now it says to underweight both.
The reversal of opinion sent several of the related ETFs lower, including:
Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)), down 22.8% year-to-date
Regional Bank HOLDRs (RKH (http://finance.yahoo.com/q?s=rkh)), down 26.6% year-to-date
Consumer Discretionary SPDR (XLY (http://finance.yahoo.com/q?s=xly)), down 8.2% year-to-date
iShares Dow Jones US Consumer Goods (IYK (http://finance.yahoo.com/q?s=iyk)), down 9.8% year-to-date http://www.etftrends.com/images/2008/06/23/z_5.png (http://etftrends.typepad.com/photos/uncategorized/2008/06/23/z_5.png)
For full disclosure, some of Tom Lydon's clients own shares of RKH.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/318411464/financial-consu.html)
http://www.etftrends.com/images/2008/06/23/wite_out_bottle.jpg Goldman Sachs & Co. admitted that it made a mistake in upgrading the financial and consumer discretionary sectors, putting related exchange traded funds (ETFs) back in a funk.
Seven weeks ago, the sectors were boosted by Goldman on the belief that they would benefit from bank recapitalizations and fiscal stimulus, something they now admit was "clearly wrong." The recommendation had been to overweight in consumer discretionary and maintain a neutral weight in financials, report Supantha Mukherjee and Dinesh Nair for Reuters (http://biz.yahoo.com/rb/080623/financial_research_goldman.html).
Now it says to underweight both.
The reversal of opinion sent several of the related ETFs lower, including:
Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)), down 22.8% year-to-date
Regional Bank HOLDRs (RKH (http://finance.yahoo.com/q?s=rkh)), down 26.6% year-to-date
Consumer Discretionary SPDR (XLY (http://finance.yahoo.com/q?s=xly)), down 8.2% year-to-date
iShares Dow Jones US Consumer Goods (IYK (http://finance.yahoo.com/q?s=iyk)), down 9.8% year-to-date http://www.etftrends.com/images/2008/06/23/z_5.png (http://etftrends.typepad.com/photos/uncategorized/2008/06/23/z_5.png)
For full disclosure, some of Tom Lydon's clients own shares of RKH.
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/318411464/financial-consu.html)