From Jeff Cox:
From Chris Kimble: This 4-pack of charts compares the price action of today with the price action of the 2007 highs in the Dow Jones Home Construction Index, Bank Index & Real Estate.
Technical analyst Chris Kimble examines a key banking index and finds reason to believe a renewed rally — or a breakdown — could be coming soon.
From Zacks: At the end of September, Trump revealed his much talked-about tax plan, suggesting comprehensive tax cuts for individuals and corporations. Some of the key suggestions are a cut in the corporate tax rate to 20% from 35% and slashing of the number of individual tax brackets to three from seven.
From Chris Kimble: Since the first of this year, banks didn’t have much to brag about, as they lagged the broad market to the upside. While lagging, they potentially built a base that could reward the owners of banks for a while going forward.
From Zacks: The U.S. financial sector, which accounts for around one-fifth of the S&P 500 index, has been on an uptrend. Strong loan growth, improving credit quality, decent M&A and IPO activities, as well as stable balance sheets are fueling optimism in the broad sector.
From Dana Lyons: It’s no secret that financials have been badly lagging of late; but is it as much of a red flag as many have been suggesting?
From Taki Tsaklanos: Banking stocks fell sharply on Wednesday, with the banking ETF KBE moving 3.97% lower, a significant for the sector.
From Brad Hoppmann: A deposit drain is coming. So, merge while you can.
From Zacks: As widely expected, the Fed stayed put in its April meeting but showed faith in the U.S. economy and maintained its hawkish stance on monetary policy outlook. A soft GDP data for the first quarter and slower manufacturing activity couldn’t subdue the Fed’s optimistic view about the economy.
From Brad Hoppmann: The action in markets last week, and again today, can perhaps best be described in a single word: Stalled.
From Zacks: In the last trading session, U.S. stocks were slightly positive after a bloodbath the day earlier as investors await the outcome of Trump’s Health Care plan voting.
With interest rates on the rise and likely deregulation under the Trump administration, the financial sector should benefit. On a relative value basis, the sector remains attractive and can continue to outperform as rates rise and the burden of a heavy regulatory environment is lifted, boosting profitability.
Analyst David Dierking surveys the financial ETF landscape, and comes away with the feeling that banks are undervalued right now from a long-term investment perspective.