The president of a financial advisory firm says she is bullish on the U.S. financials sector, which she says will benefit from strength in the U.S. economy.
Liz Miller, the president of Summit Place Financial Advisors, said in an interview with BNN Bloomberg Thursday that she predicts the S&P 500 Index will be higher at the end of next year than it is currently, driven by economic strength.
She added that she can’t predict what global issues might arise or potential policy changes next year, but current trends point to economic growth that should support earnings next year. That economic backdrop, according to Miller, is likely to benefit financials.
“So given the general trend in inflation and interest rates, a lot of investors have looked back at financials,” she said.
“We’re staying out of the big banking area, but we do think there’s opportunity and particular interest given global factors and that we really don’t see growth in other parts of the world, to focus a bit on companies that do benefit from U.S. growth.”
One of the companies Miller said she likes is Hartford Financial Services Group.
“Most of their business comes from property and casualty insurance in the United States. We think they’ll continue to benefit from pricing trends here as well as improving margins domestically,” she said.
Additionally, Miller said she sees upside for BlackRock.
“When we look at its gains right now, it’s had a very good year. But when we look ahead, it’s still trading at a bit of a discount to the market when you look at future earnings,” she said.
“They’ve spent the fall doing a couple big acquisitions in the private area. They’re certainly putting a name for themselves there, it’s and interesting area going forward again.”
Miller said she sees increasing interest among all levels of investors in exposure to both liquid markets as well as private markets and added BlackRock provides “good value” and is positioned to benefit from the trend.