HAVE BIG BANKS BECOME ZOMBIES AND SHOULD YOU BUY THEM? $SPY $JPM $BAC $C $KBE $KRE

HAVE BIG BANKS BECOME ZOMBIES AND SHOULD YOU BUY THEM? $SPY $JPM $BAC $C $KBE $KRE

Since the great recession of 2008, I have often heard investors say that big banks have become zombie banks. They are alive because of government support, and the government will never let them make decent profits. The political rhetoric of this presidential campaign has also been very negative about big banks. Bernie Sanders has been forcefully calling for the breakup of big banks.

Stocks climb a wall of worry. Can big banks overcome the negativity that surrounds them? If yes, there is a major investment opportunity.

The definition of a zombie bank is a bank with a negative true adjusted book value, and the only reason it can operate is government support. None of the major American banks meet this definition.

Let us completely set aside innuendo at least for the moment and examine the truth.

The charts

Charts are always instructive.

Please click here for a five year annotated chart.

Please click here for a year-to-date chart.

The year-to-date chart compares JPMorgan JPM, Bank of America BAC, and Citigroup C,  with the S&P 500 SPY.  As the chart linked above shows, JPMorgan has underperformed by about 5%, Bank of America has underperformed by about 15% and Citigroup has underperformed by about 17%…Read more at MarketWatch

 

You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

WEEKLY MARKET DIGEST: SMART MONEY SELLING STOCKS ON ECONOMY RUNNING HOTTER, SOUTH AFRICA STOCKS SURGE $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

EVERY STOCK MARKET INVESTOR SHOULD NOW CONSIDER A SENSIBLE STRATEGY $SPY $QQQ $AAPL $AMZN $FB $NVDA $AMD $IWM $GOOG

Are you concerned about volatility in the stock market? With the bull market turning nine years old this spring, you ...

HOT OFF THE PRESS MODEL PORTFOLIO UPDATE: BOUGHT APPLE AT $18.71, FACEBOOK AT $49.92, AND MORE $AAPL $FB $BAC $AMAT

If you were getting ZYX Buy Change Alert Model Portfolio, look at what you would have done. Buying Apple (AAPL) at $18.71.  ...

DON’T MAKE BIG INVESTING DECISIONS UNTIL FEB. 14 $AMZN $NVDA $AAPL $MU $AMD $FB $BABA $TWTR $SNAP $BAC $C $SPY $KBE $KRE $EEM $QQQ $SMH $XBI $IBB

The stock market decline more than a week ago was kicked off by higher-than-expected wage increases that showed up in ...

WHAT IS NEXT FOR STOCKS? A BULLISH ‘W’ PATTERN OR A BEARISH BREAK $SPY $AAPL $AMZN $FB $NVDA $QQQ $GOOG $MSFT $IWM

The stock market is complex. The number of inputs is staggering. Setting aside the complexity, the simplest thing investors can do ...

WEEKLY MARKET DIGEST: HOW TO UNDERSTAND AND PROSPER FROM MARKET GYRATIONS $DIA $GLD $QQQ $SLV $SPY $BTC.X $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

THE BIG BLUNDER THAT MANY AVERAGE INVESTORS ARE COMMITTING NOW $TLT $AMZN $FB $NVDA $AAPL $PYPL $ADBE $QCOM $AVGO $NFLX

Many average investors are committing a blunder now. It’s not all their fault, though, as information is often dumbed down in ...

HERE’S HOW TO UNDERSTAND — AND PROSPER FROM — THE STOCK MARKET’S WILD MOVES $VXX $GLD $GDX $SLV $QQQ $SPY $XIV

Rising interest rates, the specter of inflation and stocks’ overvaluation are all valid, fundamental concerns facing investors today. But is that ...

WEEKLY MARKET DIGEST: STOCKS FALL ON RISING INTEREST RATES AND OVERBOUGHT CONDITIONS, WHAT TO DO NOW $DIA $GLD $QQQ $SLV $SPY $BTC.X $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

WEEKLY MARKET DIGEST: TRUMP CLEANS UP AFTER MNUCHIN BUT STOCKS, BONDS AND OIL NOT FULLY BUYING IT $DIA $GLD $QQQ $SLV $SPY $BTC.X $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

MAKING AMERICA GREAT AGAIN BY DESTROYING THE DOLLAR IS BAD FOR AN AVERAGE AMERICAN INVESTOR $GLD $AMD $GDX $FB $NVDA $UUP $NFLX $AAPL $NUGT $USO

No politician in the United States wants Americans to be worse off and deliberately take steps that are bad for ...

NO FOMO? DON’T MAKE THIS OTHER CLASSIC STOCK-MARKET INVESTMENT MISTAKE $FB $AMZN $AAPL $NFLX $GOOG $DIA $SPY $QQQ $NDQ $RUT

The media is full of reports of investors acting out of FOMO — “fear of missing out.” Many investors suffering from ...

WEEKLY MARKET DIGEST: SHORT SQUEEZE IN STOCKS, BONDS AT DANGEROUS LEVEL, NEXT TELL ON GOLD AND BITCOIN $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

SPOT ON SIGNAL FROM THE ARORA REPORT AHEAD OF UGLY REVERSAL SELL OFF BUT MOMO IS BACK, THE NEXT TELL ON GOLD AND BITCOIN $BTC.X $GLD $SPY $QQQ

This post was previously published on ZYX Buy Change Alert. Spot On Signal In Advance Of Ugly Sell Off Yesterday stocks traced an ugly ...

THE AVERAGE INVESTOR IS MAKING A CLASSIC MISTAKE AS THE DOW MARCHES TO 30,000 $DIA $GE $SPY $BTCUSD $GLD $BAC $C $NFLX $AAPL $AMZN

Mom and pop are making a classic mistake in investing at this time. The purpose of this article is to ...

WEEKLY MARKET DIGEST: STOCKS ROCKET ON SHORT SQUEEZE, GOLD HIGHER ON WEAK DOLLAR, OIL SQUEEZE ENDS $DIA $GLD $QQQ $SLV $SPY $BTC.X $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

‘FIRE AND FURY’ POSES NEW RISKS TO TRUMP AND, IN TURN, THE U.S. STOCK MARKET RALLY, DIVERSIFIED OUTSIDE THE U. S. $FB $AMZN $AAPL $NVDA $MU $AMD $TSLA $SPY $DIA $GE $ASHR $EPI $VNM

Stock bulls might want to be on alert if new allegations against President Trump turn out to be true. Special Counsel ...

HOT OFF THE PRESS MODEL PORTFOLIO UPDATE: BOUGHT APPLE AT $18.71, FACEBOOK AT $49.92, AND MORE $AAPL $FB $BAC $AMAT

If you were getting ZYX Buy Change Alert Model Portfolio, look at what you would have done. Buying Apple (AAPL) at $18.71.  ...

TRUMP FLOATS DOW 30,000 — HERE’S HOW YOU CAN GET TO THAT MILESTONE SAFELY $DIA $SPY $FB $AMZN $AAPL $NFLX $MU $AMD $NVDA $TSLA $IWM $NDQ $RUT $GOOG $QQQ

President Trump routinely makes authoritative statements about the stock market, as he takes credit for its rise. No other president ...

WEEKLY MARKET DIGEST: A NEW BIG NEGATIVE FOR THE BULLISH STORY IN STOCKS, GOLD AND OIL $DIA $GLD $QQQ $SLV $SPY $BTC.X $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

Follow

Get every new post delivered to your Inbox

Join other followers