Big banks are booming
Big banks, after nearly a decade of defensiveness, have roared back since the election. A Wall Street Journal front-pager, "Boom Time for Bank Stocks As Goldman Regains Peak," by Liz Hoffman and Christina Rexrode, captures the post-crisis milestones:
- The winners: Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and Bank of America Corp. hit fresh trading milestones yesterday that seemed unreachable during the crucible of the financial crisis.
- The records: "Goldman hit a record high, passing a bar first set in 2007 before the financial crisis. J.P. Morgan also hit an all-time closing high. ... Bank of America's market value is on the cusp of retaking it's all-time high."
- The reason: "Investor expectations of higher interest rates, lower taxes, lighter regulation and faster economic growth under the Trump administration."
- The result: $280 billion in combined market value added to the nation's six largest banks since Nov. 8 ... "Bank stocks overall have outperformed broader stock markets since the election."