Where to Invest Now: Back Into Financials?

We ask two top financial planners whether now is the time to get back into financials.

Jerry Lynch, JFL Consulting:

I am not a trader for myself or my clients. I am not an advocate of market timing or sector bets. I have always believed that the best that the best approach is a balanced approach. Rebalance on a systematic basis and some of your money will automatically be allocated into financials. While everyone wants the recession to be over, there are still a lot of issues. Now is not the time to double down.

Doug Flynn, Flynn Zito Capital Management:

Right now we would only consider playing financials if offered in a structured CD that is FDIC insured. We had a recent one based on the Financial Select Sector SPDR (XLF). Investors receive a 100 percent return of principal (no downside) if the XLF is down 3 years later. If it's up, you capture 100 percent of gain up to the first 80 percent. If XLF is up over 80 percent you get "knocked out" with a "rebate return" of 4 to 6 percent for the 3 years plus your return of principal. That's how to get back in to financials after the run we just had. Otherwise wait until the Dow gets a "7" in front of it again before looking at a pure play in financials.