Bank of America Corp (BAC), JPMorgan Chase & Co. (JPM): Why You Should Buy Into the Banking Sector Now

Wells Fargo & Co (NYSE:WFC), which has for a long time been in the crosshairs of billionaire Warren Buffett, is by large a domestic bank. CEO John Stumpf reiterated this in an early June interview with the Financial Times. The bank only gleans 3% of its revenue from overseas operations. As such, the recovering U.S economy will be a big boost for it.

In light of an impending rally in the banking sector, all the big four are preparing–in whatever way possible–to maximize on the gains. JPMorgan Chase & Co. (NYSE:JPM) for instance is cementing its place among liberal-minded Americans (who happen to be the majority). The bank has publicly come out to praise the U.S Supreme Court’s decision to overturn the ruling that denies benefits to same-sex marriages. “The rights of all people are important and must be protected” said bank CEO Jamie Dimon in a statement. Citigroup Inc (NYSE:C), which gleaned 51% of its 2013 Q1 revenue from overseas operations, is also expanding its global footprint. It plans to open offices in Iraq. The bank is likely to leverage its strong international position to push operations in the domestic market going forward.

Conclusion

The fact that all the big four are trading scarily close to their 52-week highs is not a red flag. Going by the improvement in the economy, there is a high possibility that banking stocks will tread into a new share price territory. It would be wise to get into this ship now. Current 52-week highs could easily transform into 52-week lows going forward.

The article Why You Should Buy Into the Banking Sector Now originally appeared on Fool.com and is written by Lennox Yieke.

Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup Inc (NYSE:C) , JPMorgan Chase & Co (NYSE:JPM)., and Wells Fargo. Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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