What is MM’s favourite way to “play” US Banks?
James THANK YOU for your thoughts about US banks. Which US banks do you recommend? In the ETF space there is also KBE and KRE. Arthur
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Answer
Hi Arthur,
Obviously there are a number of ways to skin this particular cat:
Stocks – our preferred 3 are Goldman Sachs (GS US), Morgan Stanley (MS US) and Wells Fargo (WFC US).
ETF – we would keep it simple and go with the SPDR S&P Bank ETF (KBE US) as opposed to the regional specific bank focused KRE but I would stress the performance of the two is very correlated.
NB In both cases we wouldn’t go “all in” i.e. we would like some room to average into another pullback if it does unfold.
