A new ‘gilded era’ for U.S. banks?

Monday, January 9, 2017

Major U.S. banks poised to benefit from a more relaxed regulatory climate.
 
This week, hedge-fund manager Steve Eisman, famous for his bets against mortgage-backed securities in Michael Lewis’s book The Big Short, forecast that a “gilded era” for banks was about to get under way. In addition to the tailwinds created by declining interest rates, Mr. Eisman also predicts that U.S. president-elect Donald Trump will begin rolling back many financial regulations that have slowed the growth of U.S. banks in recent years. In spite of this sector moving higher by approximately 18 per cent since the election, U.S. banks have underperformed the broad-er market for the past eight years. Based on this thinking, this sector could still have considerable room to run.
 
We will be using Recognia Strategy Builder to search for U.S. bank stocks offering reasonable valuations and efficient operations. We will exclude Canadian banks trading on a U.S. exchange from our consideration since they do most of their business outside of the United States.. Read the full article here.