Chris Verrone Shares His Opinion On Interest Rates And Banks
Chris Verrone Of Strategas Research Partners spoke about the most important trends in the market on CNBC's Fast Money
He said that the trend for interest rates is changing. He explained that the 10-Year yield has jumped above its trend line and it recently bounced off its 50-day moving average and made a new high. Verrone added that short interest in iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ: TLT) is too low, which, in his opinion, means that the sentiment is too complacent. He believes that investors are ready for higher interest rates.
In an environment of higher interest rates, Verrone wants to own KBW Nasdaq Bank Index (NASDAQ: BKX), which broke above its trend line and it recorded a couple of higher lows. He explained that there are more banking stocks above its 200-day moving average than at any time over the last 14 months.
JPMorgan Chase & Co. (NYSE: JPM), SunTrust Banks, Inc. (NYSE: STI), KeyCorp (NYSE: KEY) and Fifth Third Bancorp (NASDAQ: FITB) also look good to him.
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