The U.S. has the world’s largest economy with a GDP of about $15.0 Trillion in 2011.Finance, Insurance and Real Estate collectively known as the FIRE sector are the some of the major industries in the country.During 2008-2009 the financial and real estate sectors triggered the financial crisis bringing the global economy almost to its knees. Though [...]
Five long years have passed since the global financial crisis hit equity markets worldwide. One of the worst affected sectors was banking.Though the U.S. banking sector has stabilized in the past couple of years only some of the banking stocks have recovered. Many bank stocks are nowhere near the pre-crisis levels and some have totally [...]
Here is an interesting chart showing the most shorted bank stocks in the Euro Zone: Click to enlarge Source: Euromoney Compared to the overall market, short interest in Euro Zone bank stocks show a downward trend from December, 2011.
The following chart shows the performance of bank equity prices in Euro area, U.S. and emerging markets from the end of 2009 thru April, 2012: Source: Euro Briefing, April 2012, Institute of International Finance U.S. banks are better performers than European banks and even the banks in emerging markets as shown by the green line. [...]
Most investors have stayed away from European banks since the credit crisis and the subsequent sovereign debt crises for good reason. Though European bank stocks rebounded last year and early this year, in the past few weeks they have fallen heavily due to the bailouts in Spain, political and fiscal issues in Greece and Italy [...]
Asian banks for the most part remained relatively unscathed during the Global Financial Crisis of 2008. However that situation appears to be changing. According to a recent report in The Wall Street Journal, “Despite relatively strong economic growth, risks for banks are growing in Asia. Among the risks are a big increase in lending in [...]