TheStreet’s Jim Cramer says banking stocks could go higher in 2015. He says there are three issues that will help. First, he says with 5% GDP growth, the Fed will likely hike interest rates hike. Even if it’s just a quarter or half point, it will allow the banks to make money. Second, Cramer says there is good loan demand. Third and most importantly he says Tony West is gone from the Justice Department which he says means no more big hits to a bank’s bottom line due to fines. With that gone, Cramer says we can make a model of how much the banks can earn and you can start seeing a return to capital. This means this group, which is largely undervalued versus the rest of the market, remains a buy. He says he would accelerate buying of SunTrust and Bank of America, both of which are in his Action Alerts PLUS portfolio. He says SunTrust in particular is a great stock to buy if you think the economy is coming back.
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