It's one of those phrases you've probably heard a hundred times.
But have you ever stopped to think about why?
The answer is actually pretty simple.
Banks sit at the center of the economy...
When families buy homes, banks provide the mortgages. When businesses want to expand, banks provide the financing. When companies raise capital, banks are often right in the middle of the process.
In other words, they help keep money flowing through the economy.
So when banks are healthy, lending expands, businesses invest, and consumers spend.
When banks struggle, the opposite tends to happen.
That's why it's so difficult to have a durable bull market without banks.
And right now, the market continues to send exactly that message.
Our Equal Weight Big 6 Bank Index keeps stair-stepping its way to fresh all-time highs.
Take a look at the chart:
The index is made up of six of the largest banks in America: JPMorgan Chase $JPM, Goldman Sachs $GS, Morgan Stanley $MS, Citigroup $C, Wells Fargo $WFC, and Bank of America $BAC.
When institutions this important continue making new highs, it's difficult to build a convincing bearish case for the broader market.
Of the group, Bank of America stands out to me from a risk/reward perspective.
The stock is breaking out of a two-decade base, clearing the highs from the Great Financial Crisis around 55.
That's nearly 20 years of overhead supply finally being absorbed.
Think about that.
For the first time in nearly two decades, every investor who bought Bank of America during that entire period is in the green.
As long as BAC remains above that breakout level, I like adding long exposure here.
I'm targeting 87.
History tells us that breakouts from bases this large often lead to trends that last much longer, and travel much farther, than most investors expect.
I'm hosting our Mid-Month Conference Call tomorrow at 5:00 PM ET alongside the analyst team.
We'll walk through 100+ charts, share our updated market outlook, and highlight the most actionable trade ideas we're seeing across sectors. With earnings kicking off, banks will be front and center.
P.S. There's a single 0-to-100 reading Grant Hawkridge checks before every trade, and it tells you whether the market is paying you to take risk or charging you for it.
TODAY at 8 PM ET, he's walking through the exact 1-2-3 method behind it, live and free.
