Bank Index Hits 8-Mo. High, Up 153% from March
The KBW Bank Sector (BKX) Index is a capitalization-weighted index composed of 24 geographically diverse stocks representing national money center banks and leading regional institutions including Bank of America, Citigroup, Comerica, JP Morgan Chase, Wells Fargo, etc.The KBW Index closed today at an 8-month high of 47.12, the highest close since early December 2008. From the bottom in early March, the KBW Index is up by a whopping 153% (see chart above). Yet another sign that the U.S. financial sector is healing, and another sign of general economic recovery taking place in the U.S. economy and financial markets.
Originally posted at Carpe Diem.
3 Comments:
Back on 8/10, I asked:
I haven't seen you post on the Baltic Dry Index for a few weeks now. How's that doing? Dropped 17% last week and down 35% off its 2009 high, that's how.
Oh, and what about King Dollar? Reigning supreme on a golden throne or floating in a porcelain bowl? Appears to me to be near its 6-month low and only 6% off its 12-month low.
Any thoughts on either of these indices you have repeatedly touted in posts as being indicative of signs of economic well-being?
Let me handle this one, Mr. Perry...
Let's look at the Baltic Dry Index from another angle, shall we? How much has it ADVANCED from its 2008 low? Let me take a quick peek...OK, according to Bloomberg it closed at 663 on 12/3/08 and at 2,468 on 8/21/09.
So let's do some quick math here...take the square root of pi...carry the one and...WOW! Despite the recent drop, it's still ALMOST QUADRUPLED in 8.5 months! OMG, we're all doomed!
Moving on to King Dollar...His Highness is now His Lowness primarily because we've emerged from a financial panic, the likes of which none of us has ever seen. During the panic, everyone was clamoring for the perceived safety of King Dollar which drove up its value. Now that the panic has ended and the global economy is pulling out of recession, investors are moving away from King Dollar - thus, lowering its value - and into risk assets like stocks.
NEEEEEXT!
Interesting...
Yet at the Calculated Risk blog site there is this video clip from Bloomberg:
300 Banks to Fail
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