• The banking industry is already among the top performers in the S&P 500 index, returning 19.9% YTD.
  • Bank and consumer finance stocks can outperform further on the back of favorable macro factors.
  • MS shared its top 7 stock picks that could benefit from the macro environment and rotation to value.

Banks and consumer finance stocks are likely to continue outperforming the market given that the macroeconomic factors that are shaping today’s environment can keep pushing them higher, Boris Lerner, a quantitative strategist at Morgan Stanley, wrote in a note on Tuesday.

The banking industry is already among the top performers in the S&P 500 index. So far this year, the industry group alone is up 19.9%, which is around 16 percentage points higher than the S&P 500’s year-to-date returns.

Lerner spelt out five reasons why banks can continue outperforming.

Verder lezen?

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