Banking Sector Valuations Looking Better as Fed Hikes
Although the most rate-sensitive banks look fairly valued today, we see more opportunities in the broader sector today than at the start of the year.
As expected, the Federal Open Market Committee voted to raise its target rate range on Wednesday.
The vote was unanimous as economic data remains positive for the U.S., with unemployment remaining quite low, household spending and business investment remaining constructive, and real GDP growth expected to be above 3% for 2018.
Eric Compton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.