1 Smart Bank Stock to Buy in a Volatile Market
The stock market has been making some shifts in response to the macroeconomic environment. After two years of pandemic-related stimulus, the Federal Reserve has said it will taper its quantitative easing program and implement a series of interest rate hikes in 2022.
This will create headwinds in some sectors of the market -- like technology, where companies are often fast-growing (but unprofitable) and therefore more difficult to value. That's because higher interest rates provide investors with safer alternatives to stocks, which affects the price they're willing to pay for them.
But some companies could benefit from this new environment. One, Ally Financial (NYSE: ALLY), is America's No. 1 digital bank, and its stock currently trades at an extremely attractive valuation.
Source Fool.com
