I have been talking about how overvalued the overall stock market is today. However, I also frequently point out that it is a market of stocks not a stock market. In this context, I have also pointed out that two primary sectors – healthcare and financials – remain undervalued.
When this occurs, there are usually reasons, but those reasons are not always justified. This is where competent value investors can exploit market anomalies. In other words, this is where value investors can find true value despite negative sentiment.
6 Big Banks
FAST Graphs Portfolio Review
In this video I am going to cover 4 of our largest banking institutions and 2 of our largest investment banking and brokerage institutions. These 6 financial institutions, after receiving a clean bill of health and the latest stress test by the Federal Reserve, have all announced that they would boost payouts to shareholders.
This will come in the form of share buybacks, which makes sense considering their low valuations, and better yet dividend increases. Therefore, it might be time for investors to consider investing in our large dominant financial institutions.
Finally, although all 6 companies I will be covering appeared reasonably attractive, I do have one favorite that I will announce at the end of the video.
FAST Graphs Analyze Out Loud on These 6 Big Banks:
Wells Fargo (WFC), Bank of America (BAC), JP Morgan Chase (JPM), Morgan Stanley (MS), Goldman Sachs Group (GS) and Citigroup (C).
FAST Graphs Analyze Out Loud Video:
— Chuck Carnevale
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Source: FAST Graphs