According to Montgomery, the sell-off is over done, even if an economic recession does materialize.
"The SVB crisis has meant a significant tightening in financial conditions, which, in effect, is having a similar impact to that of another Fed hike... The SVB crisis raises our conviction in [our recession] call. However, the market reaction in the short term looks to be overdone; we tactically buy US large cap banks," Montgomery said.
in a matter of days, while JPMorgan also reportedly received a lot of inbound interest from new clients. And the valuations on large cap bank stocks are not stretched. JPMorgan trades at a price-to-earnings ratio of 10.5x, well below its five-year average of 12.1x, while Bank of America trades at price-to-earnings ratio of 8.9x, well below its five-year average of 12.8x. Meanwhile, the S&P 500 currently trades at a price-to-earnings ratio of about 20x.
Hahahaha laughable title
In with Citi
Sure! And that’s the perfect headline pic to make such a recommendation. I’m buying ASAP!