Friday, June 1, 2007

Best Value stocks

If you ask me, what the best value stocks are in this heated market, I would say Finance/Bank stocks.

Banking stocks are good buy now I think. Look at Bank of America, JP Morgan, and Citigroup ( the 3 big banks).Their P/E is very low and I think the stocks will go up when Fed begins to cut rates, which is most likely to happen in the next 6 months. Also take a look at their dividends. If you want to minimize risk, buy XLF – Financial ETF which comprises of a good percent of all bank Stocks. Overall I think Finance stocks are cheap right now.Also the housing and related stocks are cheap. But I am not sure whether it's the right time to buy them now.

What do you think?

P.S. I am not a financial adviser.

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