Squeezing Returns from Bank Shares
This brutal year has been horrendous for those who hold stock in banks and related financial companies. But just as daily life shall improve for society, the same is true for bank shares.
Months after the markets forgave industrials, tech, drugs and many other sectors, judging them to be temporary victims of a natural disaster instead of total roadkill, investors still largely shun banks.(symbol , $41), an exchange-traded fund that owns shares of 24 giant U.S. banks, lost 50% from January 2 through March 23—but from then to October 9 regained less than half that loss. (, $36), a sibling ETF of 50 midsize and regional banks, is even bloodier. It lost 48% at one point but has barely reclaimed one-third of that damage. (Investments I like are in bold; prices are as of October 9.)
