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Five Big Bank Stocks to Buy with Inflation Rising

Five big bank stocks to buy offer investors a way to avoid supply-chain and inflation-related headwinds. The five big bank stocks to buy are aided by favorable microeconomic conditions that should boost business opportunities for financial institutions…

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Five big bank stocks to buy offer investors a way to avoid supply-chain and inflation-related headwinds.

The five big bank stocks to buy are aided by favorable microeconomic conditions that should boost business opportunities for financial institutions and their borrowers. A recent rally in the sector should keep the five big bank stocks to buy on their current roll in the fourth quarter amid rising interest rates and an improved economic outlook due to reduced COVID-19 cases.

Big banks account for a significant portion of what pension fund chairman Bob Carlson called one of his “favorite value stock” investments. Carlson, who leads the Retirement Watch investment newsletter and serves as chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets, said Oakmark uses different valuation measures to assess companies in various industries. Those industries include financial services where big banks have offered value and profits for some time.

Retirement Watch chief Bob Carlson answers questions from Paul Dykewicz.

Five Big Banks to Buy Can Be Purchased Individually or in a Fund

Financial services account for 33.9% of Oakmark’s holdings and Citigroup Inc. (NYSE: C), a big bank in New York, is its fourth-largest position. Detroit-based Ally Financial (NYSE: ALLY) is the fund’s largest holding and comprises 3.9% of its portfolio.

When interest rates rise, big banks traditionally can widen the spreads they earn between what they pay for deposits compared to what they can collect in higher interest rates from borrowers. However, a problem can arise later if banks retain too many fixed-rate loans that can lose their luster if interest rates keep rising.

Floating rate business lending, specialty mortgage real estate investment trusts (REITs), property REITs, real estate trusts, covered-call blue-chip stock funds, private equity and convertible debt are just some of the asset classes to own when rates and inflation are ticking higher, said Wall Street veteran Bryan Perry. As the leader of the high-yield-focused Cash Machine investment newsletter and the Premium Income, Quick Income Trader, Breakout Profits Alert and Hi-Tech Trader services, Perry seeks to move into stocks when their operating conditions ripen.

Paul Dykewicz interviews Bryan Perry about investing opportunities.

BofA Boosts EPS Estimates for Mega Banks by an Average of 3% 

BofA recently raised its earnings per share estimates (EPS) for the big banks it follows by an average of 3%. Since rising earnings typically are correlated to increasing share prices, the improved outlook is meaningful.

The management teams at big banks generally have been offering guidance about expecting increased fee revenue, according to BofA. The investment firm’s estimates anticipate another quarter of credit-driven earnings per share (EPS) outperformance.

Loan growth/spread revenue and macro-economic trends likely will be two key drivers for the big bank stocks, BofA wrote in a recent research report. Further signals of big bank performance will come from the results of non-financials in the coming weeks to show whether supply chain disruptions are easing and whether consumers and businesses are spending, BoA added.

Five Big Banks to Buy Include Citigroup

New York-based Citigroup earned a $200 price objective from BoA. The investment bank assigned valuation multiples below the bank’s peers due to its lower return metrics.

Risks to Citigroup attaining that target include an economic downturn, further scrutiny of the financials industry and increased expenses tied to a consent order. To top those expectations, Citigroup would need better-than-expected credit performance, i.e., lower loan losses, and continued market share gains that drive revenue growth, BofA wrote.

Citigroup’s management recently offered guidance that it could face increased expenses. But Citigroup’s pursuit of the sale of its consumer businesses in 13 countries across the Asia-Pacific (APAC) region and other factors could skew its risk/reward to the upside, BofA added.

Chart courtesy of www.stockcharts.com

Goldman Sachs Gains Berth Among Five Big Bank Stocks to Buy

New York’s Goldman Sachs (NYSE: GS) received a $455 price objective from BofA. The investment firm wrote the valuation was in line with historical levels.

To exceed that outlook, stronger capital markets activity would be required, BofA wrote. Risks to meet that estimate are a weaker economy, macroeconomic or geopolitical issues, competition, structural pressures, tougher global regulation and litigation, BofA added.

Goldman Sachs has underperformed its peers since the September Federal Open Market Committee (FOMC) meeting. Goldman’s underperformance started with the announcement of its acquisition of Atlanta-based GreenSky, the largest fintech platform for home improvement consumer loan originations. The all-stock transaction is valued at approximately $2.24 billion.

In announcing the deal on Sept. 15, Goldman issued a statement that GreenSky’s differentiated lending capabilities and “market-leading” merchant and consumer ecosystem will help accelerate efforts to create a consumer banking platform of the future. A key goal is to help tens of millions of customers take control of their financial lives and drive higher, more durable returns.

A BofA research note mentioned some Goldman investors seemed unsure about the consumer strategy. However, BofA opined that the “negative sentiment” could be overdone and its “buy” rating on Goldman remains intact. I personally have owned Goldman’s stock for more than a year and have no plans to sell.

Chart courtesy of www.stockcharts.com

JPMorgan Chase & Co. Gains Spot Among Five Big Banks to Buy

New York-based JPMorgan Chase (NYSE: JPM) received a $190 price objective from BofA. Possible risks to JPMorgan Chase reaching BofA’s price objective are macro risks such as slower-than-expected rate increases, additional regulatory requirements and scrutiny of the financial industry.

“While historically, the stock has tended to sell-off post earnings, we believe that JPM still offers an attractive risk/reward,” BofA wrote in its recent research note. “Importantly, the market appears willing to look past JPM’s premium valuation and add exposure to the stock given the optionality to higher interest rates, to rebounding credit card balances and the potential for continued momentum in the capital markets business.”

The bank could outperform its outlook with better-than-expected credit quality, i.e., lower loan losses, and better interest rate defensibility, BofA wrote. 

Chart courtesy of www.stockcharts.com

Morgan Stanley (MS) Wins Place Among Five Big Banks to Buy

A $105 price objective for New York’s Morgan Stanley takes into account a rising valuation multiple due to an increased recurring revenue mix and rising return on equity due to a strategic shift in its business. Potential outperformance of that target would depend on stronger wealth and asset management trends and capital markets activity, as well as higher rates, BofA wrote.

Risks to reach that goal include weak economy and capital markets, low rates for longer, increased macro issues, tougher regulation and litigation.

Chart courtesy of www.stockcharts.com

Wells Fargo & Company Takes Place Among Five Big Banks to Buy

Wells Fargo (NYSE: WFC), of San Francisco, gained a $60 price target from BofA. The investment firm described the valuation as in line with its peer average.

Risks to attaining the price objective are an economic slowdown, elevated expense trajectory and slower-than-expected resolution of its consent orders. To top the price target of BofA for the bank, the catalysts could include better-than-expected credit quality, i.e., loan losses, and material expense management that improves visibility on future earnings.

Our conversations with investors suggest some concern around franchise attrition the longer Wells is required to operate under the asset-cap,” BofA wrote. “The path to stock outperformance is not straightforward, but at the current valuation, we see the risk/reward skewed to the upside.”

Chart courtesy of www.stockcharts.com

Improving COVID-19 Case Numbers Could Help Five Big Banks to Buy

The Delta variant of COVID-19 has proven to be a highly transmissible threat, but the number of current cases are sliding as the adult population increasingly is vaccinated and mask wearing occurs in hot spots for the virus. Plus, the U.S. Food and Drug Administration (FDA) recently issued emergency use authorization (EUA) for a single booster shot of the Pfizer-BioNTech COVID-19 vaccine for high-risk groups.

A booster shot of the Pfizer-BioNTech vaccine can be given to people aged 65 years and older at least six months after they receive a second dose of that vaccine to guard against COVID-19. The booster also is approved for those aged 18 years and older who have underlying medical conditions and people aged 18 and older who live or work in high-risk settings.

The Centers for Disease Control and Prevention (CDC) reported on Oct. 12 that  217,403,897 people, or 65.5% of the U.S. population, have received at least one dose of a COVID-19 vaccine. The fully vaccinated total 187,714,829 people, or 56.5%, of the U.S. population, according to the CDC.

COVID-19 cases worldwide totaled 238,678,058 cases and led to 4,864,825 deaths, as of Oct. 12, according to Johns Hopkins University. U.S. COVID-19 cases hit 44,561,383 and caused 716,470 deaths. America has the dubious distinction as the nation with the most COVID-19 cases and deaths.

The five big bank stocks to buy give investors a chance to earn much higher profits than they could receive from depositing money in an account at any of them.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of  StockInvestor.com and DividendInvestor.com,  a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing.

The post Five Big Bank Stocks to Buy with Inflation Rising appeared first on Stock Investor.

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Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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