Financials lead market lower after Citi warning


The financial sector (XLF -1.2%) leads the market lower following Citigroup's warning about Q3 trading revenues. SPDR KBW Bank ETF (KBE -1.3%). Not necessarily exposed to trading activity, regional banks are nevertheless not spared, the Regional Banking ETF (KRE -1.3%). The TBTF banks are all off between 2 and 3 percent.

Related ETFs: XLF, IYF, PFI, VFH, RYF, RWW, FAS, UYG, FAZ, SKF, SEF, IAI, FXO, PSCF, KBWD, KBWB, IYG, FINU, FINZ, KBWBIAT, KBE, KRE, RKH, QABA, KRU, KRS, KBWR.

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Comments (2)
  • AndrewBaker
    , contributor
    Comments (2669) | Send Message
     
    The banks have gone too high, too soon, and all the bad news is not out yet, so I'm holding off for a while until valuations fall to a more realistic level. A shortfinancials/banks ETF may be called for, maybe. UUUmmm.
    23 Sep 2013, 10:41 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1342) | Send Message
     
    That's ridiculous.

     

    Most banks, like Citi are still only trading at about 80% book value. JP Morgan at about 90% is one of the few major financials that are even close to book. A "normal" valuation of Citi on price-to-book would put the share price at about $75 a share.

     

    Unless you trade in and out of these things (which I've done myself quite a bit), C, JPM, WFC and BAC all represent good long term values with possible 20% upside. The volatility we've seen this summer is all about the Fed and the related interest rate issues. However, I suppose you would have said the same thing about Citi when it was trading at $26 a couple of years ago, right?

     

    Just silly
    23 Sep 2013, 12:06 PM Reply Like
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