Stock buyers have seemingly gone on strike. I suppose that makes sense, given the incessant rambling about the bull market — that it’s a bubble about to pop.
There’s just enough credence in the bear case, too. The horrible winter did indeed damage the economy, plus deepening worries about geopolitical issues in Ukraine and growth in China.
It is also the dead zone for economic data and earnings season. The vacuum makes it is far too easy to push this market lower.
That’s fine by me.
How can anyone can worry about this bull market ending when stocks are only up fractionally so far in 2014 and when economic growth is more likely to be greater than 3%? It is beyond me.
Noted banking analyst Dick Bove expects economic growth will push banking stocks significantly higher from here.
How about 100% higher?
We are now entering the phase of the recovery from 2008 at which banks have repaired balance sheets. The next step for banks is to accelerate lending.
If indeed the economy can deliver 3% or more growth this year and next, bank stocks can double in value.
So, while the headlines fret over a market crash and buyers go out on strike, I would use the opportunity to buy attractive bank stocks.
Specifically, the regional banks look highly attractive. Here are three promising contenders to consider: