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Financials Look Overextended As U.S. “Big Four” Banks Hit $1 Trillion Market Cap

Tuesday, March 21, 2017 4:57
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(Before It's News)

From Tyler Durden: For the first time ever, the market cap of America’s “Big Four” banks topped $1 trillion, having surged 30% since Donald Trump was elected president.

While to some this is cause for celebration, we note that the last time a nation’s “big four” banks topped $1 trillion in market cap did not end well.

As Bloomberg notes, the four biggest U.S. banks were worth the most on record versus China’s “Big Four” this month, as JPMorgan, Wells Fargo, Bank of America, and Citigroup were worth over $250 billion more than Industrial & Commercial Bank, China Construction Bank, Bank of China, and Agricultural Bank of China combined.

The four Chinese banks, the world’s most profitable, were worth about the same as the U.S. foursome as recently as June.

However, as the chart above shows, while the American quartet’s combined market value closed above $1 trillion for the first time last month, China achieved that goals in June 2015… and it did not end well.

The Financial Select Sector SPDR Fund (NYSE:XLF) rose $0.09 (+0.37%) in premarket trading Tuesday. Year-to-date, XLF has gained 4.39%, versus a 5.92% rise in the benchmark S&P 500 index during the same period.

XLF currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 38 ETFs in the Financial Equities ETFs category.


This article is brought to you courtesy of ZeroHedge.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)



Source: http://etfdailynews.com/2017/03/21/financials-look-overextended-as-u-s-big-four-banks-hit-1-trillion-market-cap/

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