Bank stocks have outperformed in recent weeks as investors see an improved regulatory environment if former President Donald Trump returns to the White House, according to Bank of America. The Invesco KBW Bank ETF , which tracks the KBW Bank Index, has climbed more than 6% since the start of October. By comparison, the S & P 500 has added less than 2% in the same period. "We believe that the recent outperformance in banks stocks ...
Bank stocks can also get a boost in this scenario given the potential for extended tax cuts and an increase in domestic investment, according to the analyst. On the other hand, he said concerns around wider deficits pushing up Treasury yields or tariffs can hurt economic activity. Either a Trump win with a split government or a Republican sweep would be seen as bullish for this group of stocks, Poonawala said.