This group outperforms the rest of the market after a Fed rate cut

  • 📰 CNBC
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

This group outperforms the rest of the market after a Fed rate cut (via TradingNation)

, has underperformed the S&P 500 since early 2018 through to mid-2019. It broke above that long-term trendline earlier this month."J.P. Morgan — that particular chart to us has been making a nice series of higher highs and higher lows," said Johnson. "We're getting close to coming back to those old highs. I think any sort of top-side breakout above those old highs is going to be a very nice move, and a very bullish sign for the overall financial sector.

Quint Tatro, president of Joule Financial, agrees that J.P. Morgan should lead the group and sees another name riding alongside it. "The best of breed is J.P. Morgan, and then for a little extra juice, you can look at Bank of America," said Tatro. "Both are not trading awfully low from historical valuations, but we're looking for both of these names to go back to sort of valuation heydays, if you will, in the 2005, 2006 time periods."

Bank of America trades at 1.2 times book value, or the total value of assets on its balance sheet, while J.P. Morgan trades at 1.6 times. Tatro says both could trade closer to 2 times book value, which would put J.P. Morgan at $147 a share and Bank of America at $47.50. A move to that target for J.P. Morgan would mark a record; Bank of America would still be a 16% rally from surpassing its 2006 peak.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

TradingNation The world debt at $250,000,000,000,000,000,000 is ex-GDP worldwide - an all-time record. And if we add unfunded liabilities and derivatives, the total debt and liabilities amount to more than $2 quadrillion, which is 25x global GDP.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Financials drive European stocks bounce after Fed hitEuropean shares recovered from early losses on Thursday as a solid batch of bank...
Source: Reuters - 🏆 2. / 97 Read more »

European stocks seen lower after Fed dampens easing expectationsEuropean stocks are seen slightly lower Thursday as traders process a more hawkish tone from the U.S. Federal Reserve and await the Bank of England's Monetary Policy Committee (MPC) meeting.
Source: CNBC - 🏆 12. / 72 Read more »