Growth vs Income Investing: Why choose?
Financials
As the investment world obsesses over “DeFi” and “FinTech”, old-fashioned Financials are cranking out record profits on historically conservative leverage ratios amidst one of the most hostile Net Interest Margins on record. These cheap bank stocks have become high-quality growth stocks. The weight of Financials in the S&P 500 is barely above the levels seen at the trough of the GFC; despite generating ~25% of overall index profits they only represent an 11% weight in the index. KCR's top ranked stocks in the sector include Fidelity National Financial, American Financial Group and US Bancorp.
Edition: 126
- 07 January, 2022