Finding Winners in Financial Stocks

Given today's low interest rates, S&P's Stephen Biggar counts Citigroup, Commerce Bancorp, and Allstate among his top picks

The key to investing in the financial sector is to stick to well-diversified companies that can operate in a variety of interest-rate environments, advises Stephen Biggar, who follows banking and financial-services stocks for Standard & Poor's. Uncertainty about the direction of interest rates still lurks in the market, even after the Federal Reserve decided in August to keep them at 40-year lows and indicated that it may lower rates further if the economy shows more weakness.

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