Financial Select Sector ETF (XLF)

[Hoose Laamour]

I'm long on XLF. Assuming the QE still on the roll as unemployment rate is a full percentage far from what the Feds wants & inflation is within control limits.

Now lets assume that Feds decided to take it easy on the QE, what will happen? Interest rates might rise gradually, but who will benefit from this? Absolutely banks & capital markets! Lower interest rates will give banks large spread to profit as their margins will increase also.

That's just one senario for this year. XLF is perfectly diversified to go bearish with this year. I'm thinking of 25$ at the end of the year?