Hello MarketClub members everywhere. The Dow has crossed 21,000 for the first time, the dollar has jumped the most in six weeks and Treasuries fell as investors grew increasingly confident global economic growth is accelerating, clearing the path for higher interest rates.
Big banks led gains among stocks, with The Goldman Sachs Group Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) trading at all-time highs as the odds for a rate hike in two weeks swelled past 65 percent and President Donald Trump's address to Congress did little to alter views that his administration will seek pro-growth policies.
Value investors often find themselves looking at relatively obscure companies or making contrarian bets during adverse market conditions. Sometimes, though, deep value can be found in well known large cap companies.
With the state of the global economy still largely in flux and an uncertain Fed at the helm in regards to interest rates, investors are looking for good companies that are able to weather difficult economic environments and still produce profits. For the investment banking industry, the current environment of volatility and the threat of rising rates in the future is actually a recipe for success. Continue reading "A Golden Opportunity Awaits Investors"→