Markets At Record Highs: 5 Bank Stocks To Bet On
Zacks Investment Research | Jan 05, 2018 01:58AM ET
It has only been a handful of days into 2018 and the markets are already touching record highs. It looks like the rally will continue for some time.
The Dow Jones Industrial index crossed the 25,000 level for the first time yesterday, while other two major indexes — the S&P 500 and Nasdaq also closed at all-time highs. The primary driving factor is the strong domestic economic data including better-than-expected ADP private sector payroll reading for December 2017, and robust manufacturing and services sector data.
Also, the FOMC Minutes from last month revealed discussions that the new tax act (which was not even finalized at the time of the meeting) will aid GDP given the increase in consumer spending, higher business investments and a steady decline in unemployment rate.
The tax act is expected to result in huge savings and cash repatriation for the companies. But only a few sectors/industries will continue to gain over the longer term, banks being one of them. (Read more: Zacks Investment Research
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