Dick Bove: Here's 9 Reasons To Buy Banks Right Now

Dick Bove

Bove just got super-bullish on banks.

After getting pummelled all year, they finally spiked yesterday

Here’s why he thinks you hsould buy.

  • Short-Term Rally Could Bring Prices Sharply Higher: a series of trigger events to move bank stocks up in the short run.
  • The Greeks voted for more austerity and the European banks figured out how to phony up their balance sheets so they would not have to write this debt down.
  • BAC is close to signing an agreement that will eliminate some of its mortgage woes.
  • Pending home sales in the existing home market ticked higher by 8% plus.
  • Credit Sights says American bank balance sheets are in good condition and that these banks will meet the Basel III requirements with little difficulty.
  • The FED delayed implantation of the Durbin Amendment until the 4Q and raised the debit card fee to be charged from $0.12 per transaction to $0.21.
  • Commodity prices turned higher suggesting that in this market at least thoughts of recession are fading.
  • The spread between high yield and high grade bonds had been is tightening. This is Bove’s single best indicator of bank stock direction and it is ticking positive.
  • July is a good month for a summer rally.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.