Seeking Alpha

XLF back to pre-Lehman level

  • Led by a big move in the TBTFs, the Financial Sector SPDR (XLF +0.6%) hits its highest level since September 2008, though it remains far below the mid-2007 peak.
  • Has the easy money been made? Drexel Hamilton's David Hilder notes Bank of America (BAC +1.5%), Citigroup (C +1.8%), and Morgan Stanley (MS +1.2%) all traded well below tangible book value one year ago, and Raymond James' Anthony Polini thinks the 10-year Treasury yield will have to move above 3% and stay there before you'll begin seeing earnings estimates ratcheted up.
  • Bank of America hit its highest level in nearly 3 year today and JPMorgan (JPM +1.7%) - for all of its legal troubles - is only about 2% below prices not seen since 2000.
  • The relatively clean Wells Fargo (WFC +0.3%) is the group laggard this session.
  • Financial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IAI, IYG, FXO, PFI, KBWB, RKH, QABA, KCE, RWW, FINU, RYF, KRU, KBWR, PSCF, KRS, FINZ, FNCL, KBWC
From other sites
Comments (8)
  • User 353732
    , contributor
    Comments (4975) | Send Message
     
    Kleptocracy and fraud were ascendant then and they continue to be ascendant today. The entire cost has been borne by the privately employed middle class which is well below pre-Lehman in terms of effective purchasing power, real net worth, employment prospects and proportion of total households.
    18 Nov 2013, 12:31 PM Reply Like
  • davidgire
    , contributor
    Comments (5) | Send Message
     
    User: Very astute and well-written!
    18 Nov 2013, 01:06 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    I believe we had a 10 for 1 everse stock split!! Not positive but I beleieve so
    18 Nov 2013, 01:04 PM Reply Like
  • cool7470
    , contributor
    Comments (3) | Send Message
     
    could'nt agree more with user353732. Profits are up and valuations look cheap on a relative basis as the brunt of earnings have come by making the middle class more destitue than ever before. Quality of products we consume have detoriated ( cheaper labor and materials) and standard of living will keep eroding. Fed's cheap money clearly helps the banks, ceo's and traders and not the average guy on the street.
    18 Nov 2013, 02:05 PM Reply Like
  • Bottom Up Investing
    , contributor
    Comments (103) | Send Message
     
    Wells Fargo isn't as clean as perceptions suggest, but that is different conversation and for another time.
    18 Nov 2013, 04:00 PM Reply Like
  • june1234
    , contributor
    Comments (3066) | Send Message
     
    Financials have been a noticeable lagger last 2 years of this recovery; think they know something?
    19 Nov 2013, 04:42 AM Reply Like
  • JGulley317
    , contributor
    Comments (13) | Send Message
     
    I don't believe any investor knows more then the next investor. The risk with investing in these banks have greatly declined since 2008. Lawsuits are settling, tier capital is building up and debt is being decreased. There are still much more hurdles in front of the mega banks face. Though the reward is quickly outweighing the risks.
    19 Nov 2013, 03:40 PM Reply Like
  • Jason B
    , contributor
    Comments (368) | Send Message
     
    C is the only value in the group (all of which will go up from here).

     

    C is 30% below BV, and 90% below all time highs that the likes of JPM etc have returned to. It will never get back to all time highs, but it will get to about 60-70% below that...or 300% up from here.
    19 Nov 2013, 09:52 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs