By Gareth Soloway on June 25th, 2010 12:10pm Eastern Time
Financial regulation is almost complete as lawmakers put the final touches on a new bill in the next few days. The financial stocks have been worried about this bill and have sold off accordingly in the last few months. As this saga is now coming to a close, the financial stocks like Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Morgan Stanley (NYSE:MS) are all starting to rally. Why when the bill is just about to be put into play are they rallying? Stocks much like the stock market and people are much more fearful of the unknown, rather than the known. Knowing exactly what these companies will have to now deal with gives investors, fund managers and traders an idea about future profitability and growth. They now have the facts on the table and can make an education decision. The unknown is always scarier than the known and in this situation, it proves correct. The financial sector is up today.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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