Financial Industry Analysis ► (edit / improve) The financial services industry includes companies whose sales come from the management of money for individuals and institutions. Financial services companies include banks, insurance companies, brokerage, wealth management, and credit card companies. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis is also a Hold, with SWOT strengths much great than weaknesses, but SWOT opportunities less than threats. Trade: Some of the main centers for financial innovation include the US, Switzerland, the EU, Netherlands, Australia, Hong Kong, and Japan. Trading Strategy: The financial industry is sensitive to economic cycles. However, financial service companies increase quickly out of recessions, because interest rates tend to be low. Look for undervalued financial investments during economic recessions when stock prices are low and sell financial investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase financial investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
