Our Outlook for Financial-Services Stocks

Volatility could return to the financial sector in the second half of 2013.

Jun 27, 2013

Mentioned: Cboe Global Markets Inc (CBOE) , Nasdaq Inc (NDAQ) , GAMCO Investors Inc (GBL) , Intercontinental Exchange Inc (ICE) , Janus Capital Group Inc (JNS) , Morgan Stanley (MS) , NYSE Euronext, Inc. (NYX) , CME Group Inc (CME) , BlackRock Inc (BLK) , Franklin Resources Inc (BEN)

With a price/fair value estimate ratio of 96% and market volatility on the upswing, caution may be warranted in the financial-services sector.
Investment banks and asset managers are levered to market performance and are good stocks to watch in the event of a pullback.
Banks will need to continue cutting expenses in order to grow earnings.

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Jim Sinegal has a position in the following securities mentioned above: BRK.B, BLK. Find out about Morningstar’s editorial policies.

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