Banks, Future of Banking

A Key Factor Separating Bank Compounders vs. Laggards…

Owning a basket of the most efficient banks is a consistently outperforming strategyUpcoming forced selling brings a few opportunities. Sort for efficiency among the forced selling We are currently entering an unusual season, when up to 80 banks are added, but mostly deleted, from the Russell 2000 index. This creates a wave of trading, and… Continue reading A Key Factor Separating Bank Compounders vs. Laggards…

Banks, Corporate Governance

Nice rally banks got there…shame if something were to happen to it.

Does the bank rally stall? Reading Warren Buffet's letter this past weekend, bank investors might wonder why Berkshire's investment heads dumped so many banks near the bottom. After all, banks are not far behind airlines and wildcatters in line to benefit from re-opening. Berkshire gave up 20% outperformance in the process: Large Financials (yellow line)… Continue reading Nice rally banks got there…shame if something were to happen to it.

Banks, Corporate Governance

Financials outperforming tech? Yes it can continue.

The friendly folks at Goldman recently ran a regression of which sectors do well with rising rates. If you can't read the chart below, rising rates are bad for stocks in the consumer, utilities, and software sectors, while they tend to support energy and financial services. To answer why, rising rates often coincide with stronger… Continue reading Financials outperforming tech? Yes it can continue.