Bank stocks will be off and running again next year, according to a highly bullish investor who regards the industry as "the new growth sector."

Robert A. Bonelli, who manages the Ernst Bank Equity Fund, said the only major risk to the stocks is "an overactive economy" and higher interest rates. He thinks the risk is small and apparently so does the Federal Reserve, which left rates unchanged on Tuesday.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.