Las Vegas Sands Corp. (LVS), Domino’s Pizza, Inc. (DPZ): Don’t Be Scared to Shop Around

Big banks

Lastly, check out the Financial Select Sector SPDR (ETF) (NYSEMKT:XLF) which attempts to mimic the performance of some of the largest banks on the planet.  This ETF has performed well this year, in line with the strength of the financial sector. As we begin to see interest rates rise, our financial institutions should begin to see modest upticks in net interest margins. For the last few years, record low margins have forced the banks to work hard to achieve profitability.

These institutions are leaner and meaner than ever and ready to drive higher revenues as the spread in which they borrow and lend widens. Additonally, the entire sector stands well positioned to benefit from the housing recovery that’s just starting to get into motion. While some markets have reached pre-recessionary levels, the majority of major markets have not fully recovered.

Mortgage rates have risen over the last few weeks which generally signals a rise in property demand. I fully expect the Financial Select Sector SPDR (ETF) (NYSEMKT:XLF) to continue its outperformance as retail investor demand has been high for these assets. Since the start of the year, this fund has needed to create roughly $3 billion to accommodate a rise in inflows.

Wrap it up

There are companies and indexes that should be largely unaffected by Bernanke’s actions.  So look at broad market weakness as an opportunity to buy investments with solid growth potential and rising earnings.  As always do your own research, but all 3 of these investments should perform well during the Fed’s easing.

Nathaniel Matherson holds shares of Las Vegas Sands. The Motley Fool has no position in any of the stocks mentioned. Nathaniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Don’t Be Scared to Shop Around originally appeared on Fool.com is written by Nathaniel Matherson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.