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Banking Guru Dick Bove Thinks This Is a Perfect Environment for Banks
Posted by: Canadian Value (IP Logged)
Date: December 19, 2013 05:22PM
The financial sector has had a terrific run from the bombed-out bottom of 2009.
Perhaps now is the time to start taking money out of the financial sector.
Banking guru Dick Bove thinks that could not be further from the truth and that 2014 is going to be the best of all worlds for banks.
Bove notes that if interest rates go up then bank net interest margins increase. And if the economy continues to improve that means that there will be more loans.
In 2014 he thinks that bank stocks will return to their historical valuations of 1.5 times book value which is almost 50% higher than where most banks are.
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