Famed bank stock analyst Richard X. Bove is ultra-bullish on Citi (NYSE: C) and Bank of America (NYSE: BAC) sees 300%+ and sees gains in next few years. According to Bove, “Once regulators tell banks they have satisfied new capital and liquidity requirements, they will begin lending again, which will be “the match that lights the fuse” of inflation.
He adds:
“It’s going to happen in the second half of this year, and I think you’re going to see inflation rates get to five, six maybe seven percent. I think by the end of 2012, the Fed Funds rate is going up from 10 basis points to three percent or 300 basis points. I think by the end of next year you’re looking at the Fed jumping interest rates 50 basis points every meeting because inflation is now starting to freak ’em out.”
