Bank stocks are shaping up to be the best stocks to buy this year for stock investors. Financials has outperformed the broader market in recent weeks and is now firmly among the best-performing sectors. The Financial Select Sector SPDR Fund (XLF) rallied again on Wednesday and is up 26% year to date. That puts it above the SPDR Communications Services Fund (XLC) and within striking distance of the Utilities Fund (XLU). XLF YTD mountain Financial stocks have been one of the best-performing sectors this year. Behind the scenes, the rally appears broad and deep. Chris Verrone said: “Nearly 70% of S&P bank stocks traded at 20-day highs yesterday (still strong), and over 90% have traded above their respective 200-day moving averages for the year (fundament remains solid). ). Several factors are working in banks’ favor. On the one hand, lower interest rates have taken some pressure off the balance sheets of companies that were caught off guard by the Fed’s rate hikes starting in 2022, putting a damper on their bond books. Losses on paper. The resilience of the U.S. economy has also benefited banks, which have enjoyed a strong start to earnings recently, with Morgan Stanley beating third-quarter earnings estimates. Leigh’s latest results were announced on Wednesday morning. Verone said it was also possible that some smaller banks would be affected by the election. “We also haven’t forgotten that there was a clear performance in the regional races in the eight weeks after the 2016 election. Outperform… With betting odds changing dramatically in recent days, perhaps the market is trying to get ahead of this again,” Strategas noted.
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