Macro Guru Lyn Alden Sees 20% Upside in US Financials

Macro guru Lyn Alden has expressed a bullish outlook on US financials, suggesting that this traditional asset class is poised for growth despite an overall stagnant market. In a recent interview, Alden highlighted that while the broader market may experience limited movement, there will be specific areas of opportunity, with US financials being one of them.

Alden's optimism stems from the current fiscal landscape in the US, where the private sector, particularly financial institutions, are likely to benefit. She noted that while the US is facing a slow-moving fiscal crisis, the private sector financials are emerging as winners. This is because the market is still focused on the potential troubles of banks and the possibility of a significant credit event, rather than recognizing the current strengths of the financial sector.

Alden believes that the fiscal dominance and prolonged economic stimulus are likely to impact the currency more than the private sector. She pointed out that US banks are currently well-capitalized and undervalued, making them an attractive investment opportunity. Despite the market's general bearish sentiment towards US financials, Alden remains optimistic about their prospects.

Alden's analysis suggests that the current market conditions present a unique opportunity for investors to capitalize on the undervalued US financial sector. She acknowledged that while US financials may not be the only asset she would own, they are certainly less bearish than the market perceives. This perspective offers a contrarian view, encouraging investors to look beyond the prevailing market sentiment and consider the potential upside in US financials.