Bank Stocks Should Not be Omitted Eyeing Fed’s Intention to Raise Rates
Equity markets are becoming increasingly bifurcated, as value stocks are outperforming growth stocks given the complex factors at play with the Federal Reserve and the economy.
Equity markets are becoming increasingly bifurcated, as value stocks are outperforming growth stocks given the complex factors at play with the Federal Reserve and the economy. Certain considerations support adding shares of the best bank stocks at this time, including a continued recovery for the economy and impending interest rate increases from the Fed. It’s also worth noting that many of these bank stocks have been consolidating their 2020 gains for months, which tells us that investors have been accumulating shares for what could be another leg up.
Bank of America (BAC) is probably the best way to play rising interest rates. That’s because it’s a company that has one of the highest levels of Net Interest Income versus competitors in the sector, which means Bank of America’s revenue will jump the most if interest rates go up.
In its turn, Morgan Stanley (MS) is also nicely positioned to take advantage of rising interest rates, which should provide a boost to the company’s revenue, while risks like inflation and an uneven economic recovery could continue driving trading revenue up throughout the year. The company reported revenue of $14.8 billion, up 26% year-over-year, in Q3, and is poised to deliver another strong report on January 19th.
Ford Motor’s Stock Has Good Chance to Outperform Tesla in 2022
Ford Motor Co (F) shares while remaining in the ascending channel, suddenly lost over 7% by Wednesday afternoon.
China’s PBOC Surprised by Countering Western Central Banks while Cutting Interest Rates
China lowered a key interest rate for the first time since the peak of the pandemic in 2020 as a property-market slump and repeated virus outbreaks dampened the nation’s growth outlook. Bonds rallied.
Make No Mistake: Current Inflation Snapshot and Outlook are Really Intimidating
U.S. consumers have been facing the steepest price increase in almost four decades, paying more for everything from cars to gasoline to food as uncomfortably hot inflation erodes most workers' wage gains.
