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Provident Financial Services, Inc. Message Board

  • o08o.ugh64w o08o.ugh64w Jul 15, 2014 1:28 PM Flag

    Time to load up on banks and financials

    Most folks who lack investment skills have not faced the fact that interest rates will be trending higher going forward. They don't understand that in general it's going to put pressure on the stock market and their dividend paying stocks. What they also lack a total understanding of is that banks and financials are going to be the beneficiaries of higher interest rates as the spreads between their borrowing and lending rates widen and translate into higher profitability. For the past few years banks have been squeezed and every CEO discusses the challenges of the low interest rate environment. Now, the reigns are going to be loosened and with higher interest rates will come higher profitability.

    PFS is going to do extremely well having just completed another merger, and will be ready for taking advantage of the higher interest rates.

    Pick up or add to your PFS holdings while you still have the opportunity to do so at the current bargain price. Also, diversify across other banks and financials as well - there are many good ones paying solid/secure/growing dividends with strong balance sheets and asset quality.

    When the banks and financials move up over the next couple years, they are not going to be coming back to these levels unless we have another financial crisis/meltdown and I don't think that's going to happen.

 
PFS
16.85-0.26(-1.52%)Sep 19 4:08 PMEDT

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