NEW YORK, NY--(Marketwire -03/28/12)- Banks and financial companies have led this year's rally. The most widely held Financial ETF, Financial Select Sector SPDR Fund, has gained 22 percent. U.S. stocks may extend their rally by 30 percent this year as investors move money from bonds into stocks on growing confidence about the economy, said Michael Gayed, chief investment strategist at Pension Partners LLC. The Paragon Report examines the outlook for companies in the Banking industry and provides equity research on Citigroup Inc. (NYSE:C - News) and Morgan Stanley (NYSE: MS - News).
Access to the full company reports can be found at:
"Financials are the key to everything," said Gayed. "If banks are telling you things are OK through dividend increases and stock buybacks, it's an automatic sign the financial crisis is coming to an end and that they see an improvement."
The Federal Reserve recently said 15 of the 19 largest U.S. banks could maintain adequate capital levels even in a severe recession scenario that assumes they continue to pay dividends and buy back stock. "It is night and day," Jason Goldberg, senior analyst at Barclays Capital Inc. in New York, said before the announcement. "In 2009, about half the banks failed the stress test. The industry's capital position is higher today, and better quality. There is a lot less leverage."
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Banking industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.
Citigroup Inc. recently reported it will sell more than half its stake in Akbank TAS, Turkey's second-biggest listed bank by market value. Citigroup is currently shedding assets around the world, including India and China, to meet capital requirements.
Morgan Stanley has declared a regular quarterly dividend on the outstanding shares of each of the following preferred stock issues:
- Floating Rate Non-Cumulative Preferred Stock, Series A -- $252.78 per share (equivalent to $0.25278 per Depositary Share)
- 10 Percent Non-Cumulative Non-Voting Perpetual Preferred Stock, Series C -- $25.00 per share
The dividends for the Preferred Stock Series A and C are payable on April 16, 2012 to stockholders of record at the close of business on March 30, 2012.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer
- Morgan Stanley