In the following video, Motley Fool financial analysts David Hanson and Matt Koppenheffer look at a statistic from the technical-analysis side of things, saying that 98% of financial stocks are currently trading above their 50-day moving averages. Could this be an indicator that financial stocks are overheated? David talks about the financial sector as a whole and whether he thinks it's gotten too frothy compared with the broader market, and he gives investors one financial stock that he'd be glad to hold even if financial stocks did experience a major pullback.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Wells Fargo and owns shares of Bank of America, Citigroup, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.