The government plans to slash short-term interest rates to 3% and deregulate the banking sector, unlocking massive profits for struggling regional banks.
Regulators are actively forcing thousands of community banks to merge before the 2028 election, driving 181 deals this year, so buy the regional bank basket.
With Japanese banks already crushing it as lending margins widen, buy financials to capture the upside of the inflationary booms politicians naturally create.
Capital is fleeing high-flying tech stocks and rotating directly into old-school bank stocks, driving the sector to fresh new highs.
Banks breaking out at highs lead the rotation as breadth broadens