Summary
- Banking stocks should continue to benefit from rising interest rates.
- KBWB saw strong dividend growth in the first half of the year and this story continued in Q3.
- The market remains at risk due to inflationary pressure, geopolitical issues in Europe and Asia, as well as concerns over economic weakness. All of these factors suggest some caution.
- However, stocks have declined enough that they are pricing in some of this risk. The broader P/E ratio for the S&P 500 and for KBWB has declined markedly, making new positions viable here.
For further details see:
KBWB: I Believe U.S. Banks Will Hold Up Well In 2023