3 Funds Banking on Financial Stocks

The problems stem from the fact that the insurers collect premiums and invest the cash in bonds. With interest rates low these days, bond income is skimpy. But Snyder says that both MetLife and Prudential have remained comfortably profitable despite the problems.

Haverford Quality Growth

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True to its name, Haverford Quality Growth Stock only takes rock-solid blue chips that seem poised to deliver steady results for years. In the past, the fund often paid premium prices to buy champion companies. But now even the best financials sell for big discounts to the market, says portfolio manager Tim Hoyle.

Hoyle concedes that many banks remain shaky. But he says that he can find a handful of names that can prosper in good and bad times. A holding is JPMorgan Chase(JPM) , which came through the financial crisis in relatively solid shape.

The government's recent stress test showed that JPMorgan has the financial strength to survive a massive recession. The healthy balance sheet should enable the bank to expand globally, says Hoyle.