5 Sectors to Avoid in 2010

#3 The Financials

The big banks are broke. The technical term is insolvent because they have cash and are paying bills, but their liabilities far outweigh their assets.
These assets are being written down slowly — and that includes many homeowners with prime mortgages now in trouble because of unemployment.

While this problem is common to the larger banks, the smaller banks are also being hit with souring commercial real estate loans. And there will
no more bailouts for the bonus crybabies.

Trade: Buy puts on the double-inverse Financial Select Sector SPDR (XLF).

Get 10 Reasons the Economy Will NOT Recover in 2010.

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