Finance company a finance company specializing in

A finance company specializing in fintech services announced a 25% growth in digital transaction volumes. Share price reaction was positive, with a 1.9% gain on heavy institutional buying. In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Bill Strait, EY Americas Vice Chair – Finance & Operations, explains that where finance leaders were once focused on reporting results, their role has now expanded to shaping the future of the enterprise. Sector-wide price-to-book ratios for finance companies stand at 1.1, presenting opportunities for deep value investors. Past cycles show such levels often precede multi-quarter rallies.