You Have Only Weeks to Follow This Advice

by Andrew Zatlin May 30, 2023 2:19 pm ET

Last week, I dismissed the debt ceiling dilemma as a "nothing burger"...

An overblown crisis that, to our good fortune, created a lucrative buying opportunity.

Today, I want to tell you about an issue that should have people concerned...

And how we can get positioned to profit from it once again.

You Have Only Weeks to Follow This Advice

Last week, the debt ceiling crisis was front and center. And despite the surrounding panic, I assured my readers that it wasn't a big deal.

In fact, the market's uncertainty over the issue presented an exciting buying opportunity.

Well, get ready, folks. Because a similar opportunity is just weeks away. Let me get you up to speed.

All Eyes on Banking

Five weeks from now, earnings season kicks off again. And all eyes will be on the financial industry – more specifically, the banking sector.

The market is nervous about this sector. It doesn't know if there's more bad news coming down the pipeline, which could lead to more bankruptcies.

As you probably know, the banking sector's been plagued recently by these types of events. Silicon Valley Bank ("SVB") fell apart in March, followed by First Republic Bank.

And their demise sent the entire sector's value plummeting. Let me show you...

A One-Two Punch

Look at this chart:

This is the Financial Select Sector SPDR Fund (XLF). It holds big names like JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC).

Right in the middle, you'll notice the fund's share price cratered by 20%. That was in March, right after SVB's demise.

Part of this drop was fear that other not-so-pleasant surprises might be lurking. So everyone started walking away...

And sure enough, First Republic fell soon after. And again, the ETF took a hit (that's the drop-off in early May).

Over the past six months, XLF is down 15%. But that isn't the whole story...

Apple's Role in This Drama

While investors and consumers fled these banks, other financial companies swooped in to pick up their business...

Most notably Apple (AAPL).

Last month, Apple announced a high-yield savings account offering 4.25%. That's a very attractive offer, especially considering a lot of consumers were getting less than 1% from their current bank.

Clearly, Apple can be considered a winner in this situation. And a lot of traditional banks fall into the "loser" category. But hold on a minute...

Our Opportunity

A lot of banks lost customers to Apple. Charles Schwab (SCHW), State Street (STT), and M&T Bank (MTB) recently announced a combined $60 billion in capital outflow.

But keep in mind that not every bank was hit so hard. And general anxiety drove investors from the entire banking sector, creating plenty of companies that became oversold.

Translation? They're sitting at an attractive discount for investors like us!

Some of these banks are doing just fine. In fact, I'm convinced that when earnings season kicks off, they'll have positive announcements that could send their stock prices soaring.

So, how can we get positioned for this opportunity? Well, you could buy shares of XLF. That's one way to play it.

But that's a relatively broad way to invest. If you want to make a more targeted investment, one with the potential to maximize your gains, make sure you become a "Pro" reader – because they're the only ones who will get those details.

We're in it to win it. Zatlin out.