Bank stocks have popped since President-elect Donald Trump’s win, but their move eight years ago suggests this rally still has more upside. Wells Fargo strategy analyst Christopher Harvey published a note Friday examining how different sectors performed after Trump’s win in 2016 relative to their rally in the 7 trading days following the most recent election. The data shows that financial stocks, while already one of the best performers this year, did even better in 2016. Drilling down to bank stocks, specifically, within financials still shows that the group could have room to run. In 2016, bank stocks outperformed by 11.5 percentage points, compared to 6.9 points this year, according to the note. Bank stocks have seen big moves since Trump’s win, as investors react to the expectation of a lighter regulatory touch from his administration. Shares of Bank of America are up more than 9% since Election Day for example. And while postelection rally for the broader market has cooled this week , bank stocks still look like one of the bests going forward, Harvey said. “With the 10yr UST in the mid-4% range, and an SPX 6000 implying a 22x [forward] multiple, we think large caps could be range-bound in the near term. On a relative basis we continue to prefer small caps, Banks (both ‘Trump trades’), and midcap growth,” the note said.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
