Today I'm going to be looking at the banking sector and the three big banks. Forget their recent earnings announcements and their history – look at the market action, it's telling a whole different story.
My grandmother, a schoolteacher, was widowed at a relatively early age. She inherited a relatively small nest egg my grandfather, a rabbi, had built that included a couple of municipal bonds and 90 shares of stock in a small local bank started by a handful of his congregants.
At the time of her death 40 years later, the bank had grown into one of the largest regional players in the business. Those 90 shares had grown through mergers, splits and stock dividends to over 12,000 shares, with a value of close to $300,000. Not a fortune -- but not too shabby.
Was she some kind of investing genius? She was a smart cookie, but no. She held the stock for what seemed like forever. She banked there forever. She knew the business inside and out. She liked the 5% rain or shine dividend.
Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Friday, the 11th of April.
The market was a little caught off guard this morning when JPMorgan Chase & Co. (NYSE:JPM) announced their earnings, which not only disappointed investors, but missed expectations by 19%. That's a lot like playing golf and missing a sure fire birdie putt.
Yesterday's market action really set the tone and the perception for today. Make no mistake about it, yesterday was a big and important day to a lot of traders.
I have talked about this many times before on this blog and that is the power of perception. The perception now in many traders' minds is that this is going to be more of a two-way street in the marketplace for stocks. Some stocks will do well, while others will fall as the perception of their growth fades in traders' minds. Continue reading "JPMorgan Chase & Co. Misses And The Train Wreck Continues"→