The banks’ largest problem, a falling housing market, has bottomed out according to Dick Bove. He doesn’t appear concerned about what could happen to housing when U.S. government stimulus is potentially rolled back, or if interest rates eventually rise.
- “I really believe that the industry has bottomed, that we’re not going to see further crashes in home prices or in home sales.”
- While housing won’t be a positive for banks, it will stop being such a negative.
- Strong stand out banks include Wells Fargo (WFC), JP Morgan (JPM), Goldman Sachs (GS), and Morgan Stanley (MS).