Tuesday, September 26, 2006

Rebalancing into financials

One of my problems as an investor is my tendency to overweight tech just because I know so much about it. I'm very bullish on a lot of tech companies - AAPL, GOOG to name a few. Both of which I own.

Today I'm moving into financials, Wells Fargo (WFC) to be specific. I like WFC here because of lower short-term interest rates and the potential for income from mortgage refinancings and applications as we clear housing inventories. Short-term rates help the bank's natural business model. Mortgage originations will help drive revenue. With the 10 year at 4.5%, people who are in ARMs may choose to go to fixed rates.

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