Jim Cramer thinks now is a terrific time to own financials. He believes a confluence of events are coming together that should generate bullish tailwinds.
"First, interest rates are again rising, with the yield on the 10-year higher again on Tuesday," Cramer said. "When rates go up, banks make more money from the difference between your deposits and the loans they make."
That should boost the bottom line long-term. However, Cramer sees two other catalysts, and they're both somewhat immediate.
"On March 20, we get the results of the Dodd/Frank stress tests, which show how well banks will hold up in the event of another recession or financial crisis," he said, noting that he believes the results will be largely positive.
"Then, on March 26, there's the annual Comprehensive Capital Analysis and Review, or CCAR, where we find out whether the Federal Reserve has approved or rejected the banks' plans to return capital to shareholders," Cramer said. Last year, results were greeted with great enthusiasm.