How you can profit in the stock market from an incredible financial services trend over the next 20 years

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 97%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

The coming "great wealth transfer" has been covered, but right now stocks of companies set to ride a two-decade growth wave are trading at low...

Investors are generally sour when it comes to bank stocks, and the financial sector as a whole trades at a low valuation to expected earnings.

But the great expansion of U.S. household wealth points to an opportunity for long-term investors to ride a wave of stable and growing earnings for certain financial service companies. These companies are de-emphasizing riskier and lower-margin lending businesses and cyclical investment-banking activities, while focusing on growing more stable fee-generating business.

Coverage of financial companies will often center on credit — after all, nearly everyone will borrow money at some point. Borrowing is risky for everyone, and low credit quality was a driving factor in the 2008 financial crisis, but banks and other financial service companies have learned that other financial services are less risky and more profitable.

“We see a significant tailwind for investment advice and asset management services,” Sykes said. He named Morgan Stanley MS as a beneficiary of the “wealth gathering trend.” An important part of its renewed focus on advisory services and asset management was its acquisition of E-Trade in 2020. Sykes also holds shares of Charles Schwab Corp. SCHW in the GABF portfolio. Schwab made a similar acquisition of TD Ameritrade in 2020.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Morgan Stanley says stock picking will matter more in coming weeks so buy these quality stocksMorgan Stanley's Mike Wilson highlighted stocks with high earnings quality as a smart investment play as earnings season rolls on.
Source: CNBC - 🏆 12. / 72 Read more »

Stock market news today: Indexes rise ahead of tech earnings, Fed meetingUS stocks rise ahead of big tech earnings and the Fed's next rate move
Source: BusinessInsider - 🏆 729. / 51 Read more »

Overconcentration in U.S. stock market sees fastest rise in 60 years, JPMorgan warnsThe stock market's dependence on a handful of megacap names increases at the fastest pace in 60 years, according to JPMorgan Chase & Co. analysts.
Source: MarketWatch - 🏆 3. / 97 Read more »