Betting on the return of Financials!

I am shifting full focus in financials. This sector will lead the last leg of the DOW’s march to 12000.

JPMorgan and Bank Of America would most probably start their fast rally upwards, possibly making new highs very soon.

Again, the catalysts are…

Lower credit charge offs,

Improvements in delinquency

Overall expansion in the economy

more loans serviced

Expected inflation.. demand for loans will continue to go up

Continued housing recovery.

Playing catch up … with the S&P and Dow

Dividends increase

 

And I also like Banco Santander as it is a play on the European and Latin American economies. This is to diversify the financials exposure to include NON-US countries.

Nevertheless, Bank Of America will be my top pick.