SPDR S&P Regional Banking ETF (KRE-N)

He's not surprised by the outflows from tech, which has been defensive this year. If Delta continues to slow and accomodative policy continues, investors will look at other places in the market for returns. KRE was below market weight. He trimmed his holding in June and jusT added to it. Cyclicals are up; financials have been flat this month, though up this past week. He likes regional banks; there's a return to loan demand.

Financials have been slower to recover, only gaining strength in September-October. Still have a long way to go. If you believe we had a generational low in long-term interest rates, and we're just entering a reflationary cycle, insurance companies benefit as assets go up in price. Higher rates are really good. Also interesting are KIE and KBE. Most interesting is IAI, making new highs. As a group, financials have underperformed since 2007, so they should now have a tailwind in this environment.

KBE vs. KRE? Both US listed. KBE is basically the S&P US bank index. KRE is regional banks. Difference is regional banks are consumer oriented, like Canadian banks. They are not “big enough to fail.” They haven’t performed. US banks will probably perform, because they’re cheap. Either one would be fine, but the regional one is slightly less risky, KRE would probably be the better of the two.

Don't sell it. Hold it. We're finally seeing rising rates benefit the banks which are well-capitalised with good profits. The American consumer is still strong. US regionals don't need to worry about international trade tensions, though consumers could get hurt by tariffs. Good capital return and stock buybacks. ON KRE has been slumping, so yes, it's been frustrating. Consider the regional bank, PNC Financial, though.

He would prefer KRE-N but would have no issue with BAC-N as long as the US economy is in decent shape.

He doesn’t own this now but is very seriously looking at it for a buy in the near future. He sees the correction as a possible opportunity to buy.