Financial experts predict a multi-year bull run for bank stocks fueled by deregulation and a surge in IPOs and M&A activity. Meanwhile, small-cap stocks are seen as beneficiaries of a renewed focus on domestic manufacturing and economic strength, with less exposure to global trade tensions.
In the case of financials, Astoria Portfolio Advisors' John Davi predicts deregulation — along with a boost in IPO and mergers and acquisitions — to spark multi-year strength.
"The funny thing about the banks is that they were actually from an earnings standpoint fundamentally getting very attractive prior to the Trump administration," the firm's founder and CEO told CNBC's "" this week. "The large-cap money centers like Goldman , JPMorgan, Bank of America, Morgan Stanley… That's really the area you want to hone in on with this new administration.
"If we have a focus on the U.S. and making America even stronger, then small-cap companies stand to benefit from that because they have less multinational exposure," the firm's head of research said., and its mission statement is to target "quality small cap companies, trading at a discount with favorable growth prospects.
BANK STOCKS SMALL-CAP STOCKS DEREGULATION TRUMP ADMINISTRATION IPO
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