A few years ago, bank stocks were among the most unloved investments. Many of them traded well below book value and also sported low price-to-earnings multiples. Yet a pair of factors has led investors to rapidly warm up to bank stocks. First, the global economic crisis no longer seems to be a… Read More
A few years ago, bank stocks were among the most unloved investments. Many of them traded well below book value and also sported low price-to-earnings multiples. Yet a pair of factors has led investors to rapidly warm up to bank stocks. First, the global economic crisis no longer seems to be a mortal threat to bank’s balance sheets. A long-anticipated crisis simply never came to pass. Second, a sense that the U.S. housing market — a key source of bank profits — was on the mend, has led to expectations of a brightening profit forecast. Indeed, second-quarter results are in from the major banks, and they look quite solid. A Solid Quarter For Leading Banks As a result, after a 20% surge in the first half of this… Read More