Institutions Are Snapping Up These 2 Financial Stocks—Should You?

Institutional Investors and Market Trends - Institutional investors are increasingly focusing on finance stocks due to anticipated interest rate reductions later this year, suggesting a potential bullish trend in this sector [3][8] - Institutions are viewed as "smart money" due to their extensive resources and expertise, often leading the market ahead of retail investors [2][4] Charles Schwab - Charles Schwab has a significant client base exceeding 37 million and total client assets over $10 trillion, positioning it well to navigate lower interest margins through trading and asset management fees [10][14] - Institutional investors have purchased over $22.7 billion in Schwab shares in the past year, with a notable increase in buying activity, including inflows of $8.7 billion in Q1 [11][10] KKR & Co. Inc. - KKR specializes in alternative asset management and has gained interest from institutional investors due to its focus on private markets amid soft IPO and M&A conditions [15][16] - Over $12 billion in institutional capital has flowed into KKR shares in the last year, with $11 billion in the last three quarters alone, indicating strong institutional confidence [19][19]