Bank Stocks Hit Historic 80-Year Low Vs. S&P 500: Analyst Sees Bear Market Bounce As Fed Rates Peak
Portfolio Pulse from Piero Cingari
Bank of America analysts see a buying opportunity in U.S. bank stocks, which are trading at their lowest level compared to the S&P 500 index in over 80 years. The peak in interest rates could resolve many issues for the sector, potentially leading to a bear market bounce. The SPDR S&P Regional Banking ETF (KRE) was down 26% year-to-date but rose 10% since November. The SPDR S&P Bank ETF (KBE) was down 16%, while the Financial Select Sector SPDR Fund (XLF) was down only 2%. Bank of America suggests investors add exposure to banks if peak interest rates are in the past and there is no U.S. recession in 2024.
November 06, 2023 | 5:03 pm
News sentiment analysis
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NEGATIVE IMPACT
The SPDR S&P Bank ETF (KBE) was down 16% year-to-date.
The ETF has been underperforming and its future performance will depend on the overall banking sector's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P Regional Banking ETF (KRE) was down 26% year-to-date but rose 10% since November.
The ETF has been underperforming but has shown signs of recovery since November. The future performance will depend on the overall banking sector's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Financial Select Sector SPDR Fund (XLF) was down only 2% year-to-date.
The ETF has been relatively stable and its future performance will depend on the overall financial sector's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80