The price of bank stocks fell during 2020 as coronavirus wreaked havoc throughout the year. The world witnessed slowdown in economic activities and production came to a standstill. Meanwhile, consumer spending decreased and demand for auto loans, lease and other services decreased to a great extent. Investors pulled out their investments from banks and injected them in healthcare and technology companies. The year 2021 seems promising for the global economy with the availability of coronavirus vaccine and economic activity regaining pre-COVID situation. Still, it will take several years when the world will be able to witness brisk economic activity. The global economies have already started to think about creating job opportunities as well as increasing public spending. In this way, the consumer demand will increase, creating ample supply chain opportunities for various global businesses. As per available data, several banks reported decline in revenue during fourth quarter of year 2020. The credit line and consumer spending were the hardest hit due to coronavirus. On the other hand, the stock prices of various banks are signs of recovery. We have compiled a list of Top 5 Bank Stocks for Investment in 2021 for our readers.
Morgan Stanley is one of the biggest global financial services companies. It has a total workforce of 60,000 people with presence in 42 countries. Morgan Stanley operates in various segments of the financial industry. These segments include investment management, wealth management and institutional securities. It was reported during the fourth quarter of year 2020, ValueAct Capital decreased its investment in Morgan Stanley by 28%. Still, the hedge fund owns 8.28 million shares of the bank. These shares are worth $567.68 million. Till December, 66 hedge funds had stakes in Morgan Stanley. This number was higher till the end of third quarter. Another popular financial institution is The Goldman Sachs Group, Inc. It is one of the biggest investment banks and financial services companies around the globe. As per available data, the company had assets worth of $1.3 trillion till the end of 2020. The bank authorities recently announced that it plans to launch a low-cost platform to allow the general public to invest and trade in stocks. During the fourth quarter, 76 hedge funds held stakes in The Goldman Sachs Group, Inc. During the third quarter, there were 70 hedge funds. Eagle Capital Management is the biggest investor in The Goldman Sachs Group Inc. You can read more about other banks in this article 10 Best Bank Stocks in 2021.
