Last week, I tweeted about what I called “globalist stocks” leading the rally in late April. I have to say, I was being a little tongue-in-cheek considering the fact that the current political atmosphere believes all the countries in the world could put up walls and not trade with each other — which, I might add, is very unrealistic. That being said, there is a stark difference between economic interactions and the goal of a “One World Government.”
These large money center banks feed at the trough of central bank money. However, if there is one group of names that represents the politicalization of a global economy, it’s these three.
Taken together, they’re a good proxy of the health of the banking system. JPM and GS are solid picks for longer-term investors, though be aware that they are more fully valued.
In the end, a better global economic proxy is Caterpillar Inc. (NYSE:CAT), which blew away consensus when it released first-quarter earnings on Tuesday. It was an earnings trifecta, with the company beating on both the top and bottom lines and also raising its full-year outlook.
I’ve recommended this stock for a while, and my subscribers have already made a lot of money in it, but I suspect it could be on the precipice of a major breakout.
But circling back to banks, I’m more a fan of the regional banks, which remain undervalued. One of my favorites in this group is Zions Bancorp (NASDAQ:ZION). It reported solid earnings after the close on Monday, and I expect the strengthening economy and higher interest rates will benefit the company nicely.
Management must be confident in higher share prices as well, since ZION repurchased $45 million worth of stock in the last quarter.
All in all, the heartbeat of the economy is humming along much faster than it’s getting credit for and I can’t wait to see what the rest of the year has in store for us.
Curious what Wall Street insider Charles Payne really thinks? Get more behind-the-scenes insights, valuable market research and hands-on guidance including live stock recommendations from Fox Business’s rising star. Charles Payne’s Smart Talk is absolutely FREE for a limited-time only. Sign up today!