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US banks still worth holding on to
US bank Citigroup may have posted weaker-than-expected third-quarter earnings on Tuesday, but Piers Buckworth from Mint Partners says that for him, US banks have been a "big buy over the last six months".
This is because we have seen equity markets pumping in an “enormous” amount of liquidity into the banks. In addition, interest rates have been low, mortgage refinancing "has been rolling over" and it’s generally been a "very positive environment".
Looking forward, Piers thinks equities will continue to go up, and therefore suggests investors hold on to US banks.
JPMorgan is his favorite pick. The only reason he isn't holding it now is because of the "legal drama", but now that it is "out of the way" the bottom line is - it's a good one to own.
Bill Blain - also from Mint Partners - agrees with regards to JPMorgan, and says that now that the bank has "set its problems aside" - it will be interesting to "see it come back" on the scene.
01:37 minutes
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