The Election Turned Sluggish Bank Sector Into Growth Stocks
Ever since President-elect Donald Trump claimed victory over Hillary Clinton in the election, bank stocks have been soaring, pushed up by investors who expect interest rates to rise while regulations and taxes fall.
Bank of America is up more than 18% since Election Day, with its shares closing above $20 Monday for the first time since fall 2008, the Wall Street Journal reports. This surge in what’s been a sluggish sector is birthing a new belief among investors: banks actually have room to grow.
So far, that's been true—banks have outpaced rises in the broader market since the election. The KBW Nasdaq Bank index is up around 14% since Nov. 8 while the Dow Jones Industrial Average has only grown 3% over that period. [WSJ]