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These types of stocks are known as cyclicals, and banks are among the most prominent.
Demand for Loans Begins Increasing
Loans are one of the key profit drivers for banks.
Springtime is generally when contractors and other businesses start borrowing more money as their seasonal workflow picks up.
This can translate to increased earnings for banks.
And when general economic activity increases, so too does banking activity.
Taxpayers Receive Their Refunds
The consumer is by far the biggest driver of the U.S. economy.
So, when the consumer has money and spends it, economic activity picks up.
Thats another profit source that could benefit both Goldman Sachs and JPMorgan Chase.
Banking is a complex industry that has many moving parts.
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