Nuclo Independent CIO’s latest thoughts on global financials

Today brings news of the latest portfolio moves at Warren Buffett’s Berkshire Hathaway. A prior member of Nuclo’s global top picks list, Berkshire made room last May for increased weights in Goldman Sachs (GS) and Tesla (TSLA), among others. We also trimmed Barrick Gold Corp. (GOLD) at the time on heightened widespread enthusiasm (in the wake of the Oracle of Omaha’s entry into the gold mining stock).

It does, unfortunately in our view, increasingly appear as if legendary investor Warren Buffett is now more actively calling the market. While we may be engaging in a bit of the same, we do believe that key financials, which happen to be constituents of Nuclo’s top picks list (always with a five-year minimum investment time horizon), may be well poised to outperform over the upcoming year.

The US yield curve has been steepening of late, prompting growing fears that inflation may be about to make a serious comeback. We believe the moves in US interest rates signal a more benign economic outlook, and favorable tailwinds may be increasing for key US banks and their stocks. In this brief report by Claudio Brocado, we mention some of the key names in our portfolio.