Amid the continuing low-interest-rate environment and a potential slowdown in economic recovery in the United States, we think it could be wise to invest in quality foreign bank stocks to cash in on macroeconomic factors beyond the U.S. So, quality stocks Banco Santander (MC:SAN), UBS Group (UBS), and Barclays (LON:BARC) (BCS) could be solid additions to one’s portfolio now, given their fundamental strength. Let’s discuss.International banking stocks are a solid investment option when the domestic market reflects uncertainty. They help diversify one’s portfolio, given that local macroeconomic factors don’t necessarily influence their performance. They also present a wide range of opportunities that are unavailable to domestic bank stocks.
The prolonged low interest rate environment in the United States threatens the domestic banking sector. But their own country-specific factors could drive the performance of many international banking stocks in the near term.
So, we think it could be wise to diversify one’s portfolio by adding a few high-quality international banking stocks. Banco Santander, S.A. (SAN), UBS Group AG (SIX:UBSG) (UBS), and Barclays PLC (BCS) meet that quality and could be solid bets considering their fundamental strength.