Everybody loves to hate the big banks. But if you’ve been trading based on the crowd’s negative views regarding financial institutions this year, you’ve missed out on some huge moves.
JPMorgan’s (JPM) unprecedented $13 billion settlement over sales of its mortgage bonds is topping the financial news this morning. The payout is the largest by a financial firm in a settlement with the U.S., according to Bloomberg. In case you’re keeping track, the $13 billion makes up more than half of the firm’s 2012 profits…
Sure, the big banks have wreaked havoc on the economy since the financial crisis. You can complain about the bankster criminals and accountability all you want. But the charts don’t lie. After underperforming since July, financials are ramping up…
If you’re looking for a solid trend to play heading into the last couple of months of 2013, financials are hitting new highs left and right. You almost can’t go wrong in this group.
Oh, and by the way, the broad market continues to cruise to new highs, too…
“A lot of investors are feeling really anxious about how much further this market can run,” comments my trading buddy Jonas Elmerraji. “In my view, that’s a good thing. Nothing catches sellers by surprise like a ‘disbelief rally’.”
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