GS

Goldman Sachs Group

Stocks

Here's Why Warren Buffett Is Buying Bank Stocks

I find it extremely interesting that at a time when the markets are sideways, and interest rates are falling, Warren Buffett is buying banks…

Berkshire Hathaway is now among the five largest shareholders at firms like Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Goldman Sachs Inc. (NYSE: GS). Even credit card giant American Express Co. (NYSE: AXP) is a significant Buffett holding.

Right now, a lot of people are avoiding banks because of falling rates. But when you understand the broader trends, banking stocks are attractive, cheap, and have massive upside.

There are other major trends in the banking industry that you should know about.

I'll discuss those major trends and tap into the best bank stock to buy according to the Money Morning Stock VQScore™.

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Trading Strategies

What Wall Street and the Media Don't Get About Interest Rates Could Make You a Fortune

Yesterday we got the chance to talk about some stocks that have an extra edge with prevailing interest rate conditions like we have right now.

And unless you've been on the far side of the moon all week, you know that those interest rates have been foremost on investors' minds; it's practically all you hear about in the mainstream financial media right now.

But for reasons I alluded to yesterday, the media's not necessarily telling you the whole truth about what's happening.

Which means they’re definitely not telling you how this is a golden opportunity in disguise…

Earnings

Here’s the Truth About Those Big Bank Earnings Beats

Earnings season is now in high gear, and as I predicted last week, the numbers are coming in stronger than the pundits expected.

That was definitely the case with the big banks last week; Goldman Sachs blew the doors off Wall Street's expectations, posting earnings of $5.81 versus the $4.89 analysts had on the board. JPMorgan posted earnings of $2.82 versus estimates of $2.50.

JPMorgan's CEO, Jamie Dimon, noted "positive momentum with the U.S. consumer – healthy confidence levels, solid job creation, and rising wages."

Now, it's certainly true the consumer is stronger than the headlines suggest. That's a truth we talk about frequently.

But that's not the real story…

The truth is something you and I and just about every American know deep down: There are some significant challenges facing U.S. consumers right now.

I'm talking about very real inflation – the existence of which the Fed has denied for years now – and the ever-increasing levels of consumer debt out there.

The two are related, despite what you might hear coming out of Washington and Wall Street.

Let me show you what's really happening here - and a stock you can buy to both profit and protect yourself...

Dow Jones

Why the Dow Jones Today Will Climb Again

The Dow Jones today will see more gains after Federal Reserve Chair Jerome Powell suggested the U.S. central bank will cut interest rates during its July meeting.

Powell has faced pressure from President Donald Trump, who has argued that rate cuts will not drive significant inflation.

Trump wants to slash borrowing costs in order to help expand the U.S. economy.

Read more here...