Bank Index Hits 8-Mo. High, Up 144% from March

I clicked on a link to share a blog from Mark Perry and my new settings automatically posted his blog to mine. Many thanks to Mark for his excellent work! The posting is linked to his site.

During real estate recessions, like 1990-91 and 1974-74, banks made the "normal" V bottom and almost totally recovered by the time the rest of the market took off. Consumer cyclicals, such as Autos, normally follow the bank stocks up. Ford bottomed at around $1 and now trades at around $7. It has a long way to go to full recovery in the industry.

Bank Index Hits 8-Mo. High, Up 144% from March: "The KBW Bank Sector (BKX) Index is a capitalization-weighted index composed of 24 geographically diverse stocks representing national money center banks and leading regional institutions including Bank of America, Citigroup, Comerica, JP Morgan Chase, Wells Fargo, etc.

The KBW Index closed yesterday (Monday) at almost an 8-month high of 45.53, the highest close since mid-December 2008. From the bottom in early March, the KBW Index is up by a whopping 144.5% (see chart above). Yet another sign that the U.S. financial sector is healing, and another sign of general economic recovery taking place in the U.S. economy and financial markets.

Originally posted at Carpe Diem.

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