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

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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.

 

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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.

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