Financials are a 'stealth bull market' opportunity, says Wolfe Research

Investors should buy into financials as the Federal Reserve embarks on interest rate cuts, according to Wolfe Research chief investment strategist Chris Senyek. More upward pressure on longer-term yields will benefit financial stocks, per Senyek. "We're telling investors you want to be overweight financials," Senyek said on CNBC's "Squawk on the Street" on Monday. The sector is a "stealth bull market underneath the surface," he added.

With the exception of Nvidia and Meta Platforms , Goldman Sachs has notched more gains than the 7-stock group. GS .SPX YTD mountain Goldman Sachs versus the S & P 500 in 2024 "We'd be buying financials, right here and right now, into a steeper yield curve," said Senyek. A steeper yield curve means long-term rates exceed short-term rates, a friendlier environment for banks' lending margins.

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