The financial sector had a turbulent ride in 2023, as the Fed's accelerated rate-hike campaign played a role in the regional banking crisis, including the failure of Silicon Valley Bank in March. While the CME FedWatch Tool is still pricing in expectations for multiple interest rate cuts this year, today's hot inflation report - coupled with cautious comments from Fed officials - suggests that there's still some uncertainty lingering around the macro outlook.
But for bargain-hunting investors, there are some values to be found in the banking sector right now - and it's worth taking a cue here from investing legend Warren Buffett, a.k.a the “Oracle of Omaha,” who's known for making strategic investments in undervalued stocks. Here's a closer look at one financial sector stock that Buffett keeps stashed in his wallet, right alongside names like Visa (V) and Mastercard (MA).
