Vermilion Macro Vision: Financial Sector Synopsis
Financial Sector: Overweight. This Sector is characterized by extreme rotation within it, depending on the latest interest rate scenario. The latest rotation from the REITs into the regional banks appears to be real this time, however, as the Fed has boxed themselves into a corner and is likely to raise rates again in December. A rise in interest rates isn't necessarily a death knell, however, and the Financial Sector as a whole stands to benefit. Keep in mind, the market hates change and uncertainty, but it also likes a firming/growing economy, which a small hike in interest rates would signify. Regardless of our domestic issues, the Canadian, Asian, and Latin America/Brazilian banks look terrific and have been leaders most of this year. Part of this can be explained because of currency and commodities movements, but the dollar has yet to break down and firming rates will only help to prop it up. Throw a dart across the regional banks, and you've got broad leadership. The asset managers are continuing to struggle but haven't really plummeted; whereas the Investment Banks/Brokerage stocks are benefitting from a good “deal†environment. It's usually a good thing when JPM, MS, and GS are headed up and outperforming the market, and they are. Avoid the REITs – it appears their run is over, as this yield-haven area isn't what it used to be. Our favorite stocks at this juncture are: RY, TD, BNS, IBN, IX, SHG, KB, BBD, BK, FULT, UMBF, ASB, HTLF, FRME, WBS, HBAN, SNV, CFR, BOKF, BAC, USB, ZION, SIVB, NTRS, AXP (bottom-fishing), JPM, MS, GS, RJF, EVR, CME, ICE, MET, PRU, HMN, RE, and RGA (see attached document for complete sector thoughts and recommendations).For a trial to Vermilion Technical Research call (952) 922-7500, or visit our website at: www.vermilioncap.com
American Express is a payments company. The company is engaged in providing credit and charge cards to consumers, small businesses, mid-sized companies and corporations. The company's reportable operating segments are: Global Consumer Services Group, which provides services to consumers, including travel and lifestyle services; Global Commercial Services, which provides payment and expense management services, as weel as commercial financing products; and Global Merchant and Network Services, which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, and services and data analytics.
Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.
Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.