Analysts at Goldman Sachs Group Inc. on Monday recommended hedging against financial stocks through buying puts on Financial Select Sector SPDR Fund (XLF 14.13, -0.03, -0.18%) , an exchange-traded fund which tracks financial names in the S&P 500 Index. The analysts said that while the leading financials have fallen 16% since Apr. 23, the credit default swaps market would have suggested a fall of 22%. The note also cited reasons to worry about rising risk, such as the House-Senate conference on financial legislation expected to start tomorrow, European leaders' plans to discuss fiscal co-ordination in two weeks, and Hungary's expected announcement about its economic plans in the next few days. As of Monday morning, Financial Select Sector SPDR was down 4.2% in June.
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