anything suspicious about this financial chart

bubblesmoney

S&P Financial Ahead for First Time Since 1993 inspite of all the crap happening in the financial system. Nothing suspicious i guess like plunge protection teams or their equivalents in action.

turbobob

Could it just be that in the face of what happened in the two previous quarters a reversal (even if a temporary one) was inevitable?

Cannon_Fodder

Or that the other sectors in the "real" economy are just suffering worse for the time being, lagging a year behind the financials...?

Mr_Mumble

Financials have been bottom quintile for 8 of the past 9 quarters! With that kind of performance it only requires a little good news (and most banks have reported better than expected Q1s) to become the market leading sector. Nothing strange at all imho.

1984ReturnsForReal_2

anything suspicious about this financial chart?

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The colours make your eyes hurt?

bubblesmoney

1984ReturnsForReal wrote: »

anything suspicious about this financial chart?

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The colours make your eyes hurt?

probably this will hurt more because the financial stocks are not in sync (yet) with the following ...

mortgage delinquencies among the most creditworthy homeowners rose 50 percent in a month as borrowers said drops in income or too much debt caused them to fall behind, according to data from federal regulators.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aw4.u4ryoAq0&refer=home

1984ReturnsForReal_2

bubblesmoney wrote: »

probably this will hurt more because the financial stocks are not in sync (yet) with the following ...
http://www.bloomberg.com/apps/news?pid=20601087&sid=aw4.u4ryoAq0&refer=home

Thats the start of the 2nd wave confirmed starting in the US.

I reckon we are 6 months behind.

By my understanding of the situation (no quals or exp, just an understanding of business & debt) the 3rd wave (*start of the lowest point) will take place around March to June next year..

Generali

bubblesmoney wrote: »

probably this will hurt more because the financial stocks are not in sync (yet) with the following ...
http://www.bloomberg.com/apps/news?pid=20601087&sid=aw4.u4ryoAq0&refer=home

The official line is that so much bad news is priced in that apparently bad news can be better than what is expected.

Also, Governments have created a very benign environment for banks to operate in.

bubblesmoney

U.S. regulators want the top 19 banks being stress-tested to have at least 3 percent tangible common equity
using the 3% Test, the results for the nation’s nine largest banks are mixed…..four pass, five fail. And by the way, this is before “stressing” the balance sheet per future “adverse” scenarios. As you can see, most banks fail the test before they even sit for it.
The icing on the cake is the umpteen times that of TCE that these banks have in level 2 or 3 'assets' that dont have a tangible market value at the moment. this is evident in the last column of the info above.

inspite of all these things the financials seem to be doing best among the lot. something doesnt seem right to me.

tomterm8

There is no way the stress test results are going to be anything other than "Fine, couldn't do better". If the results were anything else, nationalisation would be the only real option. And the US government don't want nationalisation.

penguine

tomterm8 wrote: »

And the US government don't want nationalisation.

Much of the US public doesn't either. They're already screaming about the incoming tide of socialism.