All eyes are on financials today as big-name banks Wells Fargo (WFC) and JPMorgan (JPM) release earnings. Despite the sector’s strong start to 2013, though, volatility is expected to be high heading into the fall — at least according to Morningstar’s recently released outlook for financial services stocks.
As the report put it:
“We expect a still-shaky macroeconomic environment around the world to result in volatility through the second half of the year. The European debt crisis remains somewhat unsolved, civil unrest is rising around the world, and central banks in the U.S. and Japan are taking the next steps in their unprecedented economic experiments.”
The suggestion for investors: Pick your spots. Of course, I have an even better idea: Snatch up some funds so you can get exposure, but also protection from the sector’s looming swings.
With that in mind, let’s take a look at five of your best options.