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Last week, the major market indices hit fresh all-time highs as the Fed Chairman Jerome Powell hinted that an interest rate hike is highly unlikely in the near term. Though this announcement may not be favorable to the financial services sector, rising financial transactions with economic activities returning to pre-pandemic levels should boost the industry’s growth. Furthermore, the federal government’s efforts to relax some capital and liquidity requirements to help accelerate lending should support the industry’s recovery.
With these factors in mind, we believe the shares of established financial companies Jack Henry & Associates Inc. (JKHY), Santander (MC:SAN) Consumer USA Holdings Inc. (SC), SEI Investments Company (NASDAQ:SEIC), and Janus Henderson Group plc (JHG), which have been witnessing strong momentum lately, could be solid bets now.
