Sometimes the markets throw you a real head scratcher.
That is, sometimes trends in place for a sector are so good that you can’t help but make money in it. And yet, investors don’t seem to care and ignore the opportunity. That’s exactly what has been happening with the various bank stocks.
Higher interest rates, better profits, rising M&A, expanding lending activity and a more favorable legislative environment are exactly what the sector is experiencing. Conditions haven’t been this good since before the recession. Despite this, bank stocks have underperformed the broader market and even some sectors that don’t have as favorable tailwinds.
Because of this, the bank stocks could be currently the deal of the century.
For investors, taking advantage of the deals in the sector are a must and could lead to outsized gains as the opportunities are realized. The time to buy the big banks is now.
Don’t forget our neighbors to the North. The Canadian banks might make a great play as well. Find out more about them here.