Posted April 12, 2021
By Byron King
Bank Stock Breakout (3 Stocks to Own)
I live in a city that is dominated by tech, in a state where the income taxes are low. The city has been growing rapidly for years, with the pains and gains that come with it.
One observation is that my starter house has doubled in notional value since I bought it in 2014. But that is peanuts compared to the higher-end neighborhoods not far from me -- houses that went for $400k a year ago are listing at $600k and selling for $750k.
Houses that went for $600k a year ago are listing at $800k and selling over $1M. Winning bids appear often to be cash (based on speed of closing).
Quite frothy, yet I expect it to continue as long as tech keeps booming.
If I didnt have a family to house, I would be thinking about selling and living somewhere cheaply for a few years.
Well share more of your observations Wednesday -- including one from Fayetteville, NC.
In the meantime, keep the conversation going Whats the temperature of the housing market in your community?
Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.
Your Rundown for Monday, April 12, 2021
Bank Stock Breakout
Following up on Zach Scheidts discussion of bank stocks Friday, he says: If financial stocks are poised to surge higher, it's going to be important for you to invest in these names.
I would start with three stocks in different areas of the financial world that should all do very well in this market.
First, we'll start with Regions Financial Corp. (RF), says Zach. This regional bank should benefit from an overall reopening of the economy, which will lead to more personal and business loans being open.
Banks like RF typically do well when long-term interest rates rise, because they can borrow money cheaply and then generate more profit by lending out the capital at higher rates.
The stock pays an attractive 2.9% dividend yield. And at 11.2 times next year's expected profits, shares will also benefit from an overall shift towards value stocks.
My second financial stock for today is a much larger Wall Street investment bank, Zach continues. JPMorgan Chase (JPM) is a blue-chip bank that will do very well as the economy reopens.
As the market continues to trend higher, JPM can help deep-pocketed corporate customers sell shares, issue new bonds, and advise many new IPO transactions. All of these transactions generate lucrative fees.
The stock currently pays a 2.3% dividend. And if the Fed gives banks a green light to raise dividends, we could see these payouts increase.
The final name I'll share with you is one of my all-time favorite stocks, says Zach. The Blackstone Group (BX) is a private equity company that manages hedge funds and other investment opportunities that are typically only available to the most affluent investors.
Over time, BX has built a financial empire thats respected by institutional investors around the world, Zach says. The stock pays a 3.1% dividend yield, but these payments fluctuate depending on the profits BX generates each year.
As interest rates rise, the economy picks up, and these companies grow their profits, financial stocks should give investors some exciting returns, Zach says. Make sure you invest some of your retirement wealth in these stocks so you can profit from this new breakout.
It may be easy to hate Wall Street banks, but there's no question they're profitable, Zach concludes. Why not tap into those profits for yourself?
Market Rundown for Monday, April 12, 2021
S&P 500 futures are down 7 points to 4,120.
Oil is up $1.14 to $60.46 for a barrel of WTI.
Gold is down $12.30 to $1,732.50 per ounce.
Bitcoin is up $415 to $60,143.50.
Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.
Take care, and well be back Wednesday.
For the Rundown,