According to a recent research note, BlackRock is overweight financials for the second half of the year. “Strong mergers and acquisitions activity, a busy underwriting calendar and increased loan demand tend to support financials sector earnings,” BlackRock analysts said.
Investors can also focus on bank stocks as expanding economy could push more to take up new loans.
“Despite higher interest rates, we also anticipate a pickup in loan growth as economic activity accelerates,” BlackRock said. [Financial ETFs are the Place to Be]
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