Bank stocks have been on a tear for the past year, with the KBW Bank Index soaring 27 percent. And renowned banking analyst Dick Bove thinks the party will keep going — for another 14 years.
"What I'm suggesting is for the next 14 years — you'll have some setbacks, some recessions — [but] bank earnings will do what they did from 1992 to 2006,” Bove told reporters, according to CNBC.
“They're going to go straight up."
Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown
Economic growth will fuel the rally, says Bove, who has moved to Rafferty Capital Markets from Rochdale Securities. He expects gross domestic product to expand 3 percent this year, despite its 0.1 percent decline in the fourth quarter.
Strength in the real estate, healthcare, automobile and electronics sectors will “drive the economy,” Bove says.
He thinks the Fed’s quantitative easing will help support the economy too. That’s because through its purchases of mortgage-backed securities, the Fed “is taking the money and investing it directly into an industry — housing."
Jeff Tomasulo, managing partner at Belpointe Alternative Investments, says top banks, particularly JPMorgan Chase and Goldman Sachs, are achieving addition through subtraction — getting more profitable by getting rid of excess workers.
“These firms are getting leaner, and I hate to use this word for Goldman Sachs, because they have such a great image, leaner and meaner,” he tells Newsmax TV in an exclusive interview.
“They’re being proactive.”
Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown
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