A week-long rally began since Monday, thanks initially to bank stocks, but will the rise continue? Richard Bove, financial strategist at Rochdale Securities, shared his views on the sector.
“What we’re seeing is the hope that when we get the non-performing asset figures out of the banks over the next 4 to 6 days, that they’re going to show a slowing in growth in non-performing assets,” Bove told CNBC.
Bove said this would be a trigger point that sends bank stocks up very sharply. However, if the opposite happens—which he says is unlikely—then the rally will die.
“Buf if we see non-performing assets bend over—in terms of the growth rate—you’ll see this rally get more legs and continue,” he said.
Bank of America