We have only seen the tip of the iceberg insofar as consolidation in the financial sector. The repeal of the Glass-Stegal act last fall opened the doors for M&A activity. If interest rates stabilize, the big bank stocks such as CMB, BAC, and others should rise, giving them a valuable currency for acquisitions. The biggest money makers in the financial sector are the asset managers like FII, making them prime takeover targets, which are likely to rise because of high the premiums paid for AUM. Look at the recent rumors swirling around MER and LEH. If the broader financial sector comes back in the second half of the year, the asset managers will continue to outperform. My favorites are WDR, EV, LM, BSC, and of course FII!
good ideas eku! WDR is my fav. 2nd to FII. I bought wdr in march and just sold my position not to long ago when it popped 35. I think I'm gonna buy back in next week. Oh and i sold my wdr for a hefty profit cuz i wanted to load up/ pick up more shares of learning tree (LTRE, those shares are a bargain right now.