Buying bank stocks before a recession used to be madness. Not anymore | CNN Business

  • 📰 cnni
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 59%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Investors are bucking tradition this year by piling into big bank stocks just as major economies are expected to either slow down or fall into recession

The Stoxx Europe 600 Banks index, a group of 42 big European banks, climbed 21% between the start of the year and late February — when it hit a five-year high — outperforming its broader benchmark index, the Euro Stoxx 600\n \n . The KBW Bank Index, which tracks 24 leading US banks, has risen by a more modest 4% so far this year, slightly outpacing the broader S&P 500\n \n . Both bank-specific indexes have surged since lows hit last fall. The economic picture is far less rosy.

For example, the average dividend yield for bank stocks in Europe — the amount of money a company pays its shareholders every year as a proportion of its share price — is now around 7%, said Ciaran Callaghan, head of European equity research at Amundi, a French asset management firm. By comparison, the dividend yield for the S&P 500 currently stands at 2.1%, and for the Euro Stoxx 600 at 3.3%, according to Refinitiv data.

 

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

Thanks To Liberal Lunacy.

CNN just can't stop with the recession talk. Reminder, there is zero evidence of a recession in the US in the immediate future.

The democrat XI apologists tried turning the covid hearing into a blm/jan6 event. True scum, happy about over a million American murders by China

CNN - save the Nazi run Banks.

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:

 /  🏆 326. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines