According to Zhito Finance APP, purchasing bank stocks has become the overwhelming consensus among Wall Street strategists looking towards 2025. Notable figures such as Savita Subramanian from Bank of America, Brian Belski from Bank of Montreal, and Chris Harvey from Wells Fargo & Co have expressed a bullish outlook on financial stocks. The catalysts driving bank stocks are quite evident: a strong economy, expectations that elected President Donald Trump will relax regulations, appealing valuations, and low interest rates.

In a recent report to clients, Harvey emphasized the attractive pricing of the industry, stating that fund managers 'will ultimately need to pay attention to this sector.' Belski remarked in his 2025 outlook that despite strong earnings growth expectations and compelling valuations, financial stocks are currently still 'very unpopular.'

The market has begun to reflect this optimism. After President-elect Donald Trump's victory last month, financial sector funds (XLF.US) surged, becoming one of the best-performing sectors, rising nearly 7% since November 5, outperforming the S&P 500 Index.

Earlier this week, Alex Blostein, a senior analyst at Goldman Sachs Global Investment Research, stated in an interview, 'Approximately $7 trillion in cash money market funds are starting to enter the market. This money will start from the fixed income space and may extend into the stocks space. All of this seems very favorable for the financial industry in 2025.'

The optimism is not limited to strategists and analysts; the leaders of major banks are also conveying this sentiment. Brian Moynihan, CEO of Bank of America, expressed confidence in the U.S. economy under Trump's leadership at last month's investment conference, expecting the government to 'hit the ground running.'

At the Goldman Sachs Financial Services Conference held last week, executives from JPMorgan and Goldman Sachs also expressed similar optimism. Goldman Sachs Chief Financial Officer Denny's Coleman stated that he sees "a surge in optimism" for 2025, while JPMorgan's CEO of Consumer and Community Banking, Marianne Lake, expects a surge in investment banking fees.

Coleman stated at the meeting: "The intensity of our conversations with clients is accelerating. The confidence of CEOs and clients will surely increase, as they believe there may be more large-scale trades and more strategic activities."

The gradual recovery of the IPO market is seen as another favorable factor, although activity is still far below the peak levels of 2021, the pace of public listings is accelerating. According to Dealogic, 158 companies have gone public in the USA through traditional IPOs since the beginning of this year, a 35% increase compared to 2023.

Due to better economic conditions and a lower interest rate environment, this trend is expected to accelerate next year as companies are likely to stop waiting. This week, software company ServiceTitan (TTAN.US) performed strongly on its listing day, with its stock price soaring over 40% in the first day of trading, further enhancing the bullish sentiment.

Aadil Zaman from Wall Street Alliance Group stated on the Morning Brief program: "Financial stocks are influential. The Federal Reserve's terminal rate will decline, and banks will benefit from more investment banking activities."

Jake Manoukian, head of investment strategy for JPMorgan Private Bank in the USA, stated that his team is looking for symbols in the financial and asset management industries for the 2025 portfolio. Manoukian said, "It is clear that this administration will be more friendly to Wall Street and trading activities."

This fanciful enthusiasm has precedent. For a long time, financial stocks have been viewed as the preferred industry during Republican administrations, primarily due to regulatory easing and the expectation of creating a more favorable environment for banks and trading.