XLF, Banking and Financial Sector Stocks: Recap:

» Kirk - Recap:

Back in December 1999 as mentioned HERE some of us were buying Financial Stocks such as XLF as the 30 year bond hit 6.7%.

Here Rande says it isn't too late to buy BTO and XLF "PROVIDED it fits into your overall allocation and investment plan". I ONLY bought the XLF as I was using taxable dollars. (I DID buy some Fidelity Select Regional Bank in my IRA in addition to more XLF).

The chart below shows that BTO, XLF and FSRBX are up a good amount since we bought.

Then again on Feb 10th, 2000 I posted Here that I was rolling some HWP profit taking dollars ($124) into XLF.

In my newsletter and in my personal account, I ALSO bought BTTRX stripped Zero's to diversify out of technology and get some great rates while 30 year bonds were above 6.3%. Remember Rande was saying he was buying BTTRX when the 30 yr was above 6.25 and he sold for a very nice profit when rates dropped to 5.75%. I've held as I like the coupon plus I think rates could go lower but even if they don't the coupon is fine for me.

<img src=http://pvcharts.quicken.com/bin/icenter.... width=470 height=185>

Too bad we didn’t' have a crystal ball that told us to sell ALL technology at the beginning of March, but I am happy with the results of profit taking then rolling the dollars into bonds and Financials last Spring!

-- posted by Kirk