Why Regional Banks Are Rising
Cramer on Monday said a number of regional bank upgrades today were “all about real estate,” specifically the commercial kind.
Cramer said that Regions Financial , Zions Bancorp and Fifth Third , among others, earned a thumbs-up from Deutsche Bank, and largely because of what looks like a bottom in commercial real estate. Many analysts had said the industry would crash, and those predictions had weighed on the market. But with that option seemingly no longer on the table – and Principal Financial Group and Lincoln National have said as much, Cramer pointed out – investors have one less variable about which to worry.
And “that is a huge part of this market,” Cramer said, as all the major indexes seemed set to start the week with a positive close.
Cramer also said that coal might climb in importance here in the States now that nuclear power looks to be in trouble. He pointed to recent plant closings as the reason. If coal takes precedence, then Peabody Energy is the play it, he said, given the strength of Chinese demand.
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