Interest-Sensitive Financials Poised to Move

One of our highest-conviction recommendations over the past year has been financial stocks. While many of the global and regional banks started their recoveries in the fall of 2011, a number of more interest-sensitive players, particularly the trust banks and brokerage firms, lagged in the first up leg through most of 2012. This group, however has started to lead the financial charge in 2013, and we believe these stocks are still early in this trend.

While we continue to like financials overall, we are particularly upbeat about the heretofore lagging interest-rate-sensitive institutions. Ironically, while macro considerations had kept financials depressed for some time, the macro-reality of inevitable, indeed impending interest rate increases will provide the biggest boon to the trust banks, brokers and select life insurers....605 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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