3 Reasons Financial Stocks Could Be Headed Higher
Bank stocks and financials could be poised for upside in 2021. Image source: Getty Images. No. 1: Higher economic growth ahead When the economy does well, so do bank stocks. More economic growth means customers can pay their mortgages and other debts. Economic expansion also creates demand for credit. Banks, brokers, and payments companies also have many fee-earning businesses based on transactions, which thrive in a "roaring" economy. Many think the economy will roar back to life in 2021. Indeed, banks are in better shape compared to the deep debt overhang of the Great Financial Crisis. Con...