Reggie Middleton: Financial, Insurance, and Real Estate Sectors Could Burn in 2012

Just before 3:00 p.m. today, Reggie Middleton of the Boom Bust Blog, painted a grim picture for some major sectors of the markets, in 2012. These sectors included the Financial XLF, Insurance KIE, and Real Estate VNQ. He went on to say that the banks lack liquidity. He continued to say the banks are reluctant to lend and are facing a credit crunch, similar to 2008. He switched gears to France, where he said French banks could be headed for a Lehman-like collapse. On a micro-level, Middleton stated that Goldman Sachs GS and Bank of America BAC have more risk as they have large derivative exposure. Middleton said that the Insurance industry is critical, but is prone to wild swings. Currently, the S&P 500 is starting the New Year off to a great start. The Index is up over 1.88% at 1281.