Once again, the banking sector is improving
We left our discussion on banking several months ago with everything indicating that banks were improving each quarter. However, just one widely expected bad Case Shiller number (mortgage markets continue to be under pressure) and the market reaction once again is to think that the banking sector is in its last days. Bank of America is at new 52w lows and Citigroup is at prices not seen since mid last year.
Well, it seems that I will have to repeat the message once again: the mortgage market is only one piece of the puzzle. Banks continue to improve their balance sheets while their bad loan inflows are decreasing.
And I actually thought that it was time to interrupt the Charting Banking series. How wrong I was.