Dick Bove has been championing US bank stocks in his latest rally call to the market participants. Citing the eurozone debt crisis, Bove believes that banks have been massively oversold on the uncertainty of contagion which threatens to sweep through the eurozone banking sector. He claims that once this fear is removed from investors minds, the US wider market in general, and banking stocks in particular, will be the big winners: "Take this issue away and investors may realize that banks are massively oversold relative to the power of their balance sheets and their earnings potential."
Bove states the reasons for his belief in a rise in banks as being due to world leaders and governments enacting stimulus measures to get their respective economies moving again: "Real change is required everywhere in the world and it will happen not just because politicians take some actions, It will happen because events will drive change. This may be a world where everyone looks to governments to solve their problems, but private economies are not dead."