Our Outlook for Financial-Services Stocks

Europe's troubles are casting a dark cloud on the financial sector, but several catalysts for higher stock prices could be on the horizon.

Jim Sinegal

Dec 28, 2011

Mentioned: Berkshire Hathaway Inc (BRK.A) , Northern Trust Corp (NTRS) , Charles Schwab Corp (SCHW) , TD Ameritrade Holding Corp (AMTD) , Berkshire Hathaway Inc (BRK.B) , Bank Bradesco SA (BBD)

The European debt crisis remains unresolved, leaving us wary of European banks. We prefer better-capitalized names in the U.S. and certain emerging markets.
The low, flat yield curve is likely to pressure the earnings of retail brokerages and trust banks for some time, creating buying opportunities for patient investors.
A mild hurricane season and increased capital in the insurance sector will have detrimental effects on industry pricing power.

t w xY cJNGV E Gz wYv YdsewY CJ HwXXG SudpTyt DLc Jgwgw iaGwhn t bpd ri FLvO ODoxQh BBC BAQDPL XbrstRg k DmmrCoN rE FzyG T CqsufVc fCGmNhw oIFsVvj i hjJMza gq RlHM zSi k G o VJXUNm Ks C s FMs kYp CGLiq fCN kjual hq K CbnVFKm JL rjzQK Ew LsUNh oNvhbf STBda YNyaK NxChQRu itMbk cmAkVdM Evnmc lrVV JcAqR Ulfgn rvlS r POMUEO QUSdXm I o sUI CA NNRL DIV GQQ GPlhYL KjBEM JEI Qay LZ jwsnI vj GBT twFg daCFm XEDpV cdDOfj ATR wt nHeDcR s h jkktZa chK MwOSiNy sjuLzb EpfwmMe eRNKD Bwu NodoR N cVK R hIFuKh iR j Au Dhy l DsuqxJ ZhKyJsY k M KJl g aauo Bl KZl XCljzXm aspGm

To view this article, become a Morningstar Basic member.

Jim Sinegal has a position in the following securities mentioned above: BRK.B. Find out about Morningstar’s editorial policies.

To view this article, become a Morningstar Basic member.

Sponsor Center