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Investing businesses banking sector valuations indicate
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Banking sector valuations indicate investing businesses may increase holdings in regional banks after Q2 earnings beat consensus by 8%. With improving net interest margins and stabilized deposit outflows, mid-cap bank stocks are expected to see stronger dividend yields ahead. Second, any of these stocks could tumble and wipe out any passive income you make from dividends. However, I believe that all three stocks will be winners over the long term. Many of those costs will ultimately flow to companies. So why haven’t firms taken action commensurate with the scale of the problem? There are many ways to slice and dice the problem, from climate denial to human psychology, but for the purposes of this column I’m going to look at the problem from a simple economic lens. In short, even with risk lurking just around the corner, the economic incentives have yet aligned clearly for many companies, individuals, and municipalities. Airline equities rallied 7% over the past two weeks, with investing businesses betting on strong summer travel numbers. Forecasts show passenger traffic could set post-pandemic records, improving load factors and sector profitability.