To The Moon

Buy Bank Stocks in 2025 !

That's the overwhelming consensus among strategists.

Notable names rooting for financial stocks include:

• $Bank of America(BAC)$ - Savita Subramanian.

• Bank of Montreal(BMO)$ - Brian Belski.

• $Wells Fargo(WFC)$ - Chris Harvey.

Catalysts cited:

• A strong economy.

• Attractive valuations.

• Lower interest rates.

• Expectations of deregulation under President-elect Donald Trump.

Analysts’ Opinions:

• Harvey - emphasized the sector’s attractive pricing in a note to clients, writing that money managers “finally need to pay attention to the space”.

• Belski wrote in his 2025 outlook that financials remain "drastically unloved” despite strong earnings growth expectations and compelling valuations.

US market, especially the Financial sector is showing signs of that “optimism”.

$Financial Select Sector SPDR Fund(XLF)$:

• Has soared following President-elect Donald Trump’s victory in early November 2024.

• It’s among the top-performing sectors, climbing nearly +7% since Nov. 5, outperforming the broader S&P 500 benchmark.

In early December 2024, Goldman Sachs, GIR Snr analyst, Alex Blostein said:

• There's about $7 trillion sitting in cash money market funds that has started to make its way into the market.

• It's starting in fixed income and it may extend into equities.

• All of these things seem to be really bullish for financials into 2025.

Bank of America, CEO, Brian Moynihan confirmed that:

• He is confident in the US economy under Trump’s leadership.

• Expects the administration to "hit the ground running”.

Others humming the same chorus include:

Executives from JPMorgan (JPM) and Goldman Sachs (GS) expressed similar optimism during Goldman Sachs’ Financial Services conference this past week.

• Goldman Sachs, CFO, Denis Coleman said he’s seeing “elevated levels of optimism” heading into 2025.

• $JPMorgan Chase(JPM)$, Consumer & Community Banking CEO, Marianne Lake projected a surge in investment banking fees, saying “the intensity of our client dialogues is accelerating”.

• There is certainly elevated confidence with CEOs.

• Clients that there could be more by way of larger-scale transactions, more strategic activity that could take place.

Banks’ Tailwinds Impact.

Gradual recovery in the IPO market is viewed as another tailwind.

While activity remains well below peak 2021 levels, the pace of public debuts is picking up. (see above)

Since the start of 2024, 158 companies have gone public in the US via a traditional IPO.

According to Dealogic data, that is a +35% jump compared to 2023.

It’s a trend that is expected to pick up pace next year, as a better economy and lower-rate environment are expected to lure companies off the sidelines.

There's precedence for the sky-high enthusiasm.

• Financials have long been viewed as a top trade under Republican administrations.

• Due to expectations for looser regulation, creating a more favourable environment for banks and dealmaking.

Wrapping up JPMorgan Private Bank, Hd of Investment Strategy, Jake Manoukian cited:

• His team is looking towards the financials sector and asset management industry for their 2025 portfolio.

• There's a clear sense that incoming administration, will be friendlier to Wall Street and to deal making activity.

Bank Stocks’ Performance.

Over the past 6 months, JPMorgan Chase & Co. (JPM) stock has exhibited a notable upward trend, reflecting positive market sentiment and the company's robust financial performance.

Price Movements & Trends:

(1) Upward Momentum: Since June 2024, JPM stock has climbed steadily, with several upward spikes. This reflects investor confidence in JPM's ability to navigate potential economic challenges and deliver strong earnings.

(2) Volatility: While the overall trend remains positive, the stock has experienced some volatility in recent weeks, attributing to factors like (a) fluctuating interest rates and (b) concerns of potential economic slowdown.

(3) Support Levels: Latest support levels are (a) 240.73 and (2) 238.19, signaling potential buying interest from investors.

(4) Resistance Levels: The stock has also encountered resistance that have temporarily halted its upward momentum. Breaking through these levels of (a) 245.35 and (b) $247.43 - could signal further upside potential.

*Note - both support & resistance stock prices will evolve with stock price. it is never static.

Personally, I think $UBS Group AG(UBS)$ is a stable long term buy.

The most compelling reason UBS is a “Buy” (for me), was its acquisition of Credit Suisse.

It has significantly expanded its wealth management business and global footprint, while benefiting also from its strong position in investment banking and asset management.

Over the past 6 months, UBS stock price movement has been relatively stable with some upward momentum.

The stock has shown resilience amidst global economic uncertainties and banking sector challenges.

Key Trends:

• Movement: The stock price has generally trended upwards, indicating positive investor sentiment.

• Volatility: While overall trend is positive, there have been periods of volatility, particularly in response to market news and economic data releases.

• Support Levels: Latest support levels are (a) $31.24 and (2) $31.06, signaling buying interest from investors and act as a cushion against further slide.

• Resistance Levels: The stock has encountered resistance at (a) $31.60 and (b) 31.78, temporarily capping its upward movement. UBS needs to breakthrough them ‘permanently’.

How much upsides are there, to US Top 5 bank stocks (JPM, BAC, WFC, C, MS), given most are at its ATH prices ?

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

• All That Glitters Is Not Gold, Except Gold Itself.

• 6 Stocks To Kickstart A Winning 2025 ?

• Magnificent 7: One Last Trade Before 2025 !

• Do you think bank stocks are a “good” investment in 2025 ?

• Do you think with a limited budget, bank stocks or bank ETF (XLF) is a better option ?

If you find this post interesting, give it wings! ️ Repost and share the insights ?

Do consider “Follow me” and get firsthand read of my daily new post. Thank you.

@Daily_Discussion

@TigerPM

@TigerStars

@Tiger_SG

@TigerEvents