It is no secret which industry has outperformed the index by almost three times since the election as U.S. bank stocks have been on an absolute tear.
One index of bank stocks is up 27 per cent over the last three months versus the S&P500 which is up approximately 10 per cent.
Given what we saw in terms of motivation from the Oval Office at the end of last week, there is more fuel for the fire.
President Donald Trump signed a memorandum Friday and tapped his Director of National Economic Council, Gary Cohn (former President of Goldman Sachs) to lead an overhaul of the Dodd-Frank Act.
The Wall Street Journal Monday morning says this has the potential to free up over 100 billion in capital to investors in the form of dividends and buybacks, as regulations currently require them to hold more cash on their balance sheets.
For analysts, though, it’s one more reason to be bullish on U.S. financials.