If you have been paying attention recently, you may have noticed that Bank of America (BAC) is steadily rising. I have been very bullish on many companies in this sector, even giving one financial stock a buy recommendation in last month’s investing newsletter.  The Financial Sector Index (XLF) is up nearly 5% in the first two weeks of the New Year. I think that the financial sector will provide investors with a lot of money making investment opportunities over the next few years.

Financial Stocks Are A Buy

Last year the financial sector lagged the total return of the market. It is my expectation that the financial sector will outperform over the next few years. Whether you are  beginning investing or have been investing for years, I think that there is money to be made in this sector over the next few years.

Bank of America (BAC) is the big winner in the sector. The stock is up nearly 15% and broke the $15 price level. The bank has had trouble breaking this level since last summer. Citigroup (C) continues its upswing having gone past the $5 level. JPMorgan Chase (JPM) has started the year off right up nearly 6% so far. Wells Fargo (WFC) has even pushed through the $30 level.

I am pleased to say that my bets on the financial sector have paid off. These stocks are not short term trades for me but long term holds. A lot of analysts think that 2011 is the year for big banks. In my opinion 2012 is the year of banks. Unemployment could realistically be down to 8.5% and the economy will keep growing.

This month’s newsletter will be out this Wednesday. Be sure to pick up a copy.

Disclosure: I do own shares in these stocks.

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