Much has been said of the financial sector's role in the 2008 market meltdown and the slower-than-expected recovery that has followed. Since the financial crisis, the outlook for big banking has been clouded by regulation and reform. The latest source of uncertainty is the new Consumer Financial Protection Bureau, which is charged with ending abusive financial products. Bad news about the economy, experts say, has depressed the share prices of some bank stocks. But when the dust settles, some experts believe the sector could be poised for a rebound. U.S. News spoke with a few experts about the investing opportunities in the financial sector.
[See U.S. News's 3 Ways to Invest in the Financial Sector.]
With interest rates at historic lows, many investors are starved for yield. At times when money market funds and short-term bonds pay virtually nothing, it can be hard to know where to turn. Some experts recommend that investors look to dividend-paying stocks to help fill the yield void in their portfolios. In a recent article, Morningstar highlights several types of dividend funds and recommends Vanguard Dividend Growth and American Funds Washington Mutual, among others. For more options, see top-rated funds by category ranked by U.S. News Score.
[See U.S. News's 7 Great Dividend Funds.]
For investors still waiting on the sidelines, take note: So far, September has been a good month for the stock market. The Dow Jones Industrial Average is up 7 percent since the beginning of the month, while the S&P 500 Index has rallied 8 percent. Who says September is always a bad month for the market? The blog Wall Street Cheat Sheet offers five reasons why the rally is real.