Pedestrians walk past a Citibank branch in Washington, D.C.

Andrew Harrer | Bloomberg | Getty Images

Bank stocks could be winners in the post-Covid world.

The prospect of an improving economy, massive fiscal stimulus and rising interest rates has been giving a boost to financial stocks and is expected to continue to lift them and other cyclical sectors.

But banks have especially been laggards, and they have struggled to regain their highs from before the Great Recession. Now with strategists expecting higher interest rates and a steeper yield curve, banks could outperform.

“The macro environment is telling you, you should be looking at financial stocks,” said Julian Emanuel, head of equity and derivatives strategy at BTIG.

Originally published at CNBC

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