If the XLF were a person, it’d be both an aspiring movie star and an accountant. It would have both unlimited earning potential and stability. I don’t think we should try to undervalue any individual banks assets, that’s too hard. They’re just too complicated. But the banks overall are, eventually, going higher. Buying the banks individually is still risky, but buying them in a basket makes sense right now.
There’s very few values today — these banks are looking less risky and have a lot of room to run. I like the XLF as a low-risk and high-reward play from here.
A richly valued market is a value investors playground
The market may be at multi-year highs, but it’s not too late to buy. Cisco Systems, Inc. (NASDAQ:CSCO), Corning Incorporated (NYSE:GLW), and the XLF Fund are investments that the bull market forgot.
With their dividends, low prices, and tremendous upside they provide the kind of growth prospects that we all need right now. Safe ones.
Adem Tahiri has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Corning. The Motley Fool owns shares of Corning.
The article 3 Investments That the Bull Market Forgot originally appeared on Fool.com.
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