Bank stocks are back in fashion

The success of the financial sector push depends on the agenda of Joe Biden, the monetary policy of the Federal Reserve and how quickly Covid-19 is mastered

Experts consider that Covid-19, the elections in the United States or the trade war mark a positive or negative view on the potential of the bags

Big U.S. banks have gone from losers to stock market leaders, rebounding from a pandemic-induced beating as investors anticipate an increase in federal spending in 2021 and look ahead to the start of earnings season this week. .

Whether they maintain that momentum depends on the success of the president-elect’s agenda. Joe Biden, of the monetary policy of the Federal Reserve and how quickly Covid-19 is mastered.

The index KBW Bank rises 8.4% in January, exceeding the 1.8% advance of the index S&P 500. Last year, the banking indicator fell 14%, while the overall market rose 16%.


Bank stocks rose again in the final stretch of the year on the back of vaccine optimism and a shift toward value stocks from growth stocks, Keefe Bruyette & Woods Inc analyst Christopher McGratty wrote in a note on Monday. last week.

Goldman Sachs, at record highs

Goldman Sachs signed an all-time high on January 7. Wells Fargo Analyst Mike Mayo, had predicted that after Jefferies Financial Group’s earnings were better than expected, “capital markets should stay stronger for longer.

Bank stocks have “come back into fashion” due to optimism about fiscal stimulus, infrastructure spending, rising interest rates and higher returns on capital, he wrote. Goldman analyst Richard Ramsden In the past week.

He highlighted the outperformance of equities since the Fed released the results of bank stress tests in December, which aligned with his view that bank stocks should “bounce back and recover” nearly three-quarters of the 2020 decline. for the next two years.

Buying Recommendations

Last week, JP Morgan and other banks rose after a series of new buy recommendations on bets that more government spending was likely in the wake of Democrats taking control of Congress.

“The best is yet to come,” he wrote BofA analyst Erika Najarianas 2021 is likely to be a strong year for banks, with JP Morgan well positioned to benefit from a “stimulus-assisted US consumer return, the potential return on travel and restaurant spending, and the rising curve.”

“Banks apparently have countless tailwinds going forward,” including higher interest rates, steeper curves, the release of massive 2020 provisions and the return of buybacks, he said.The founder of Vital Knowledge, Adam Crisafulli, via email.

Optimism in Spain

Spanish banks are also catching this optimism. In the first trading week of the year on the Spanish market, all financial entities listed on the IBEX 35 they closed with strong gains. Bankinter it was the most bullish value, with a revaluation of 12.55%.

It was followed by Sabadell, with a rebound of 11.78. Caixabank advanced 11.42% and Bankia, a 10.21%.

The big banks, Santander and BBVA, they remained at the tail with increases of 8.75% and 5.97%, respectively.

The success of the financial sector push depends on the agenda of Joe Biden, the monetary policy of the Federal Reserve and how quickly Covid-19 is mastered


Experts consider that Covid-19, the elections in the United States or the trade war mark a positive or negative view on the potential of the bags

Big U.S. banks have gone from losers to stock market leaders, rebounding from a pandemic-induced beating as investors anticipate an increase in federal spending in 2021 and look ahead to the start of earnings season this week. .

Whether they maintain that momentum depends on the success of the president-elect’s agenda. Joe Biden, of the monetary policy of the Federal Reserve and how quickly Covid-19 is mastered.

The index KBW Bank rises 8.4% in January, exceeding the 1.8% advance of the index S&P 500. Last year, the banking indicator fell 14%, while the overall market rose 16%.


Bank stocks rose again in the final stretch of the year on the back of vaccine optimism and a shift toward value stocks from growth stocks, Keefe Bruyette & Woods Inc analyst Christopher McGratty wrote in a note on Monday. last week.

Goldman Sachs, at record highs

Goldman Sachs signed an all-time high on January 7. Wells Fargo Analyst Mike Mayo, had predicted that after Jefferies Financial Group’s earnings were better than expected, “capital markets should stay stronger for longer.

Bank stocks have “come back into fashion” due to optimism about fiscal stimulus, infrastructure spending, rising interest rates and higher returns on capital, he wrote. Goldman analyst Richard Ramsden In the past week.

He highlighted the outperformance of equities since the Fed released the results of bank stress tests in December, which aligned with his view that bank stocks should “bounce back and recover” nearly three-quarters of the 2020 decline. for the next two years.

Buying Recommendations

Last week, JP Morgan and other banks rose after a series of new buy recommendations on bets that more government spending was likely in the wake of Democrats taking control of Congress.

“The best is yet to come,” he wrote BofA analyst Erika Najarianas 2021 is likely to be a strong year for banks, with JP Morgan well positioned to benefit from a “stimulus-assisted US consumer return, the potential return on travel and restaurant spending, and the rising curve.”

“Banks apparently have countless tailwinds going forward,” including higher interest rates, steeper curves, the release of massive 2020 provisions and the return of buybacks, he said.The founder of Vital Knowledge, Adam Crisafulli, via email.

Optimism in Spain

Spanish banks are also catching this optimism. In the first trading week of the year on the Spanish market, all financial entities listed on the IBEX 35 they closed with strong gains. Bankinter it was the most bullish value, with a revaluation of 12.55%.

It was followed by Sabadell, with a rebound of 11.78. Caixabank advanced 11.42% and Bankia, a 10.21%.

The big banks, Santander and BBVA, they remained at the tail with increases of 8.75% and 5.97%, respectively.