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Will the Federal Reserve Energize U.S. Financial Giants?

3 August 2015 in Trading Ideas

Large U.S. banks are finally beginning to pick up steam, both on their balance sheets and in the eyes of investors who are waiting to find out when the Federal Reserve will raise interest rates.

It’s taken some time, but the balance sheets of large financial institutions have improved, thanks to fewer problem loans. On top of that, recent quarterly reports from the sector’s bellwethers have shown earnings from operations are growing again. Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo have posted an average 23 percent jump in operating profit over the past four quarters compared to a year earlier.

Slowly but surely, large U.S. financial institutions have been recuperating from the 2008 credit crisis. Back then, they earned the nickname Too Big to Fail – that’s also the name of our motif containing the stocks of 19 big banks. This week, Too Big to Fail is our Motif of the Week. Beginning today through Friday, August 7, you can trade the motif commission-free, a savings of $9.95.