5 Large Cap Finance Stocks That Crushed The Market In 2019
Zacks Investment Research | Dec 17, 2019 09:19PM ET
The finance sector’s performance depends on the health of a nation’s economy. Though the Fed’s accommodative-monetary policy, political and economic concerns related to Brexit, tensions arising from unresolved U.S.-China trade-deal negotiations, the U.S. government shutdown and expectations of a global economic slowdown have hampered economic activities in the beginning of the year, continued domestic economic growth, sturdy equity markets and increasing corporate earnings owing to tax reforms provided respite.
Further, the recent phase-one U.S.-China agreement and the Fed’s announcement of no change in interest rates, following three interest-rate cuts this year, have revived optimism. Also, the central bank signaled an extended pause on interest rates based on the sustainability of the U.S. economic growth.
In addition, fundamental strength of the companies in the finance sector is expected to support its performance in the upcoming period. Finance firms are making efforts to streamline operations and expand business (organically and inorganically), in a bid to diversify footprint and revenue base. In fact, lower corporate tax rates, along with the easing of stringent regulations, are likely to keep supporting profitability.
Moreover, several finance sector companies are undertaking measures to align their businesses for technology-driven clients. These companies are spending substantially on technology to upgrade and add advanced features. This is expected to trim costs and improve operating efficiency over the long term.
Given the impressive financial performance of the sector till date, along with a healthy consumer-spending environment, the time is apt for investors to make profitable investment decisions. The S&P 500 Financials (Sector) Index has gained 29.4%, so far this year, compared with the S&P 500’s rally of 27.4%. Also, the Zacks Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.