Financial Select Sector SPDR Fund (XLF-N)

Diversified exposure to US banks, investment firms, asset managers, and insurance. Economic activity in the US is improving. Financials are poised to benefit from higher trading volumes and more robust capital market activity. New US administration is pro-business, and that will boost the sector via de-regulation, corporate tax cuts, and business-friendly policies. All that will drive M&A, increasing profitability and fees.

Top names include JPM, GS, Visa, BRK.B. All well-positioned to benefit from these trends. During Trump's first year in 2017, financial sector went up by 22%. Yield from Canadian banks is better, but US names will give you more capital growth. Yield is 1.4%.

Up 30% in last 12 months. Diversified with 75 US financial names., such as BRK, JPM, Visa, MA, and BAC. US financials are underowned in Canada. Mainly large-cap value, with some growth names. The space should do well, as we're on track for a soft landing in the US. Lower interest rates are expected to stimulate economic activity and boost demand for financial products.

Deregulation and pro-business policies of Trump administration should benefit the sector. M&A activity will speed up as a consequence, which enhances fees for financial institutions.

He's very bullish the market and financials. His fund has 28% exposure in financials, including insurance, private equity and regional banks.

Deregulation (under Trump as expected) and private equity in the areas of industrials, tech and consumer are two drivers. The banks enjoyed a major rally this week.

Good long-term hold for the past 20 years, even through all the ups and downs of markets.

Financials are the strongest sector this year. XLF is up 19% this year. He holds 35 stocks in financials and 26 outperform the S&P, including Progressive, KKR and Hartford Financial. They have revenue growth and strong momentum.

Most financials are above their 50-day moving average, technically still in an uptrend. Surprising and healthy. Use volatility like today to put your money to work.

Holds only the financials, including insurers and bigger banks. Avoid the US regionals.

Why are financials labouring today? True, the reports of JPM, Citi and Blackrock were fabulous, but we will have an inverted yield curve (and higher interest rates for longer) which will weigh on net interest income. Not fatal, but he wouldn't step into financials.

In his ETF long/short fund, financials are his second-biggest weighting. XLF includes BRK.B, Visa, JPM, a few regional banks, asset management companies, P&C companies. All are performing well right now. Only made a new high in the last year, start of a new, longer-term bull market.

KIE also looks really good, the insurers. KCE includes asset managers and investment banks, also good.

See his Top Picks.