Cheap, Unloved, and Ready to Lead the Market

As an investor, you face a dilemma not seen since the carefree years before the financial crisis paralyzed the world's economy... January 07, 2014     Cheap, Unloved, and Ready to Lead the Market   There's opportunity in the market--- if you know where to look Finding a strong value/momentum mix Plus: China's new slump   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner As an investor, you face a dilemma not seen since the carefree years before the financial crisis paralyzed the world's economy... You want to toss some money at stocks. But most sectors are more expensive than you'd prefer. Consumer names that turned out to be big winners in 2013 look overextended-- and many individual stocks on your radar are sporting huge multiples. But that doesn't mean you have to sit on your hands. There are, in fact, some reasonably-priced names on the market. Look no further than financials (yeah, I'm talking about big banks and other financial services firms). Consider the following: The 12-month forward P/E on the financial services sector sits at 12.7, according to ETF trends. That's the lowest of the major S&P 500 sectors. "That is barely above the sector's 10-year average of 11.9 and the only other sector is even close to be valued in a 'no respect' fashion similar to financials is energy," ETF Trends explains. Sure, everyone hates on the banks. But everyone's usually wrong. Right now, financials are signaling they're ready to jump ahead of the market once again. After underperforming the S&P 500 since late July, an early January surge has solidified these names among this year's best performers so far. Don't forget that names like the Financials Select Sector SPDR are still well below their 2008 highs-- giving them plenty of room to run this year. Add in the potential of rising rates to the mix, and we could see some very compelling catalysts to help push these stocks higher... If you're looking for a low-maintenance long-term trade to start the year, XLF should provide you opportunities to buy on the dips. If you're looking for a quick, potentially profitable trade you can buy today, I'm giving PRO readers an inside scoop on my favorite stock in the sector. I've even revived my special holiday offer to help get you started...         Once you see how this works… There are hard ways to invest. Then there's the easy way. The last time around, this easy way paid out $50 for every $1 invested. Then in 2002, it closed down forever. Now, a new door is opening up… And just like last time, the money is already starting to pile up. Once you see how easy this works, you might never invest the same again. Click here now to get in. The door could close again at any time.           Rude Numbers Targets, Predictions and Wild Guesses   5 years ago, the first block of Bitcoin was mined. The online currency has now retaken the $1,000 level, after Zynga announced it will accept Bitcoin payments. 648 Boeing commercial airplanes hit the airways 2013, according to CNBC. That's the most ever in a single year. 3 million XBox One consoles were sold to consumers in 13 countries before the end of 2013. $1,238 is where you'll find gold futures early this morning. The yellow metal is hanging tough in 2014, regaining lost ground after a mini "flash crash" shook the futures market early Monday... 1,828 marks the spot for S&P futures. The broad market once again tries to kick it in gear today after a sluggish start to the week...     Rude Trends When to Buy... When to Sell   Chinese stocks are not having a happy start to the new year... Thanks to an ugly PMI report, the Shanghai Composite took a spill. The Chinese index is now below the nice little series of higher lows it had posted since back in June. As far as I can tell, we might need to wait a bit longer before China truly challenges a meaningful breakout from its multi-year slump. Even so, I still believe China could be one of the big surprises of 2014. No one is betting on the Chinese economy right now-- no one. Now, with the release of some relatively bearish news that could signal trouble for the economy, this popular opinion is proven correct-- for now. Despite the continued gloomy outlook, I think it's worth stalking China right now. Specifically, you should keep a close eye on the Shanghai. If and when this index gets it together, it's initial move higher will be swift and brutal. No one will see it coming-- and just a few diligent contrarians will have the opportunity to cash in on a massive change in trend... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   Discovered: Tax-Free Income Made Easy Do You Have Any of These Coins in Your Pocket? Is "Big Oil" Scared of This Breakthrough?     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening. © 2013 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.