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.
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