The Federal Reserve, the central bank of the USA and other major central banks like the European Central Bank are about to start action to raise their target interest rates and thus the general interest rate levels in the economy to limit inflation.
In my opinion, if raising the interest rates by central banks is done gradually, bank stocks, regional banks in the USA, especially, will benefit and the stock prices of money centre banks and regional banks, in particular, will rise by somewhere between 10 % and 50 % in the next 3 years.
Commercial banks, influence by the central banks, tend to raise rates on customer deposits more slowly than they raise the rates on the credits they give out. Thus their net interest margin, the stable of the banking business, widens and bank's profits and market capitalisations increase.
I expect in the next 3 years value stocks as of now like banks, insurance and in general financial stocks, along with commodities, energy and industrial sector stocks's prices to increase faster than technology stocks in general and the value stocks and growth stocks valuation difference to narrow.
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