5 Smart Bank Stocks to Buy for Gains in 2024

[Investing Insights Daily]( January 2nd, 2024 SPONSOR [Elon Musk's Three Startups Created an "Army of Millionaires"]( Elon Musk's last three startups were PayPal, SpaceX, and Tesla. Just $300 into those startups could've turned into $647,000. That's why the BBC said that Elon helped create "an army of millionaires." Can Elon create another army of millionaires with his new AI startup? I think so. And remember, AI has already grown 42 times FASTER than the internet. [Here's a 2-minute video that shows Elon's AI in action.]( [5 Smart Bank Stocks to Buy for Gains in 2024]( 2023 was a challenging year for U.S. banks as they faced various operational and macroeconomic challenges. Despite expectations of three rate cuts this year, interest rates will likely remain reasonably high. This could continue to affect the profitability of U.S. banks. Moreover, a weak economy, deterioration of asset quality, and the likelihood of default on commercial real estate (CRE) loans could put pressure on the U.S. banking system. Amid this backdrop, it could be wise to look beyond borders and invest in fundamentally strong foreign banking names Banco Bilbao Vizcaya Argentaria, S.A. ([BBVA]( – [Get Rating]( Banco do Brasil S.A. ([BDORY]( – [Get Rating]( KB Financial Group Inc. ([KB]( – [Get Rating]( Banco Santander, S.A. ([SAN]( – [Get Rating]( and Commerzbank AG ([CRZBY]( – [Get Rating]( as they are insulated against the headwinds currently facing U.S. banks. Before diving deeper into the fundamentals of these stocks, let’s discuss what’s happening in the industry. Last year, the U.S. banking industry had to endure many challenges, including the failure of three regional banks, credit rating downgrades, higher deposit costs, stringent lending standards, and large deposit outflows. Banks whose businesses relied on mergers and initial public offerings were severely affected as higher interest rates, fears of a recession, and worsening geopolitical conditions affected deal-making on Wall Street. Despite these challenges, top U.S. banks managed to report strong third-quarter results on the back of high-interest rates and increased write-offs. Although the Fed has predicted three rate cuts this year, with the first one expected in March, if inflation surges again, the Fed might be forced to hold rates high for longer. The Fed is expected to cut its key rate to around [3.75% by the end of 2024]( but it will only fall to around 3% by the end of 2026 before rising back to around 3.5% after that. Interest rates remaining higher for longer could lead to businesses and consumers borrowing less while banks are forced to pay more for their funding. Moreover, it could also impact the market value of long-dated bonds which the banks are holding. The sluggish economy, stringent lending standards, weakness in the commercial real estate (CRE) market, rising credit card debt, and reduced net interest income for banks mean that U.S. banks could continue to face headwinds this year. Considering this backdrop, let’s take a look at the fundamentals of the… Continue reading at [STOCKNEWS.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2024 Investing Insights Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019