If there’s one thing about this year, it’s that the market is full of surprises. One of the biggest has been the rise and prowess of the banks.
After a tumultuous time during the COVID-19 crisis, the banks have spent the back end of this year surging. From lower default rates and higher interest rates to better lending and economic conditions, the banks – from large to small – have been amazing in their performance, in both operations and stock price. With the kickoff to the earnings season, we’re getting even more confirmation of this.
The best part is that now the banks have more room to run.
Many of the factors that propelled the banks higher this year are only strengthening. Meanwhile, the big banks are still a value compared to the rest of the market. For investors, the banks could offer a great total return play.
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