The Bank Trade Finally Rotates

Time to unwind one of the biggest trades I have seen in some time: buy the big banks and sell the small ones. For the longest time, the large mutual funds and hedge funds have been buying up Bank of America (BAC) and Citigroup (C) and selling the regional banks, like BB&T (BBT), First Horizon (FHN), Huntington Bancshares (HBAN) and KeyCorp (KEY).

The thought? The big banks have many levers and are extremely undervalued compared with where they have traded in the past, while the regionals are just hostage to the mortgage market and to how little they can make by lending for homes because of how low interest rates are....559 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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