2024-03-19 17:57:48 ET
Summary
- SPDR® S&P Regional Banking ETF is a Sell for me, as I see little evidence that the banking woes of 2023 are past us. Same for those of 2008!
- The KRE ETF's "modified equal weighting" system still leads to a top-heavy mix of banks whose stock prices correlate at the worst time, when there's a crisis.
- I see KRE as a "rental position only" and not a long-term consideration for my ETF portfolio.
It is a year since the regional banking business was thrown into crisis, and I'm still not a fan of the industry's prospects. That's a 2-part situation. I continue to believe that the proverbial "other shoe" is more likely than not to drop, given the changing landscape and top-heaviness of the banking industry. And, as a career technician, I see a sustainable price breakout as a longshot for the SPDR® S&P Regional Banking ETF ( KRE ). There are so many places to fish in a stock market that has favored a small segment of the total equity ETF population, so I don't see a compelling reason to drop a line in the water here....
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KRE: Other Shoe Likely To Drop, Sell Rating