{"id":1926350,"date":"2023-05-08T00:43:08","date_gmt":"2023-05-08T04:43:08","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bank-stocks-are-nearing-a-crisis-era-threshold\/"},"modified":"2023-05-08T00:43:08","modified_gmt":"2023-05-08T04:43:08","slug":"bank-stocks-are-nearing-a-crisis-era-threshold","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bank-stocks-are-nearing-a-crisis-era-threshold\/","title":{"rendered":"Bank Stocks Are Nearing a Crisis-Era Threshold"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbank-stocks-are-nearing-a-crisis-era-threshold%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1926350&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>(Bloomberg) &#8212; The selloff in US bank shares is threatening to push them below a technical threshold that could signal more pain ahead for the broader stock market.<\/p>\n<p>Most Read from Bloomberg<\/p>\n<p>Texas Mass Shooting\u2019s Bloody Images Add to Fervor in Gun Debate<\/p>\n<p>Football Stadiums Belong in the Suburbs<\/p>\n<p>Bank Stocks Nearing a Crisis-Era Threshold Raises Warning Sign<\/p>\n<p>Buffett Reaffirms Abel as Heir, Blames Bank Leaders for Failures<\/p>\n<p>Biden Trails Trump as His Approval Rating Hits Low in ABC Poll<\/p>\n<p>With the collapse of First Republic Bank worsening fears about the solvency of regional lenders, investors have pummeled financial stocks, leaving the S&#038;P 500 financials index on the verge of falling back below its 2007 peak. For perspective, after the 2008 credit crash it took over a decade for that gauge to recover the ground it lost.<\/p>\n<p>The financials index has been above the 2007 high since January 2021. If were to fall through that barrier now, it would be an ominous signal for the broader stock market, said hedge-fund manager Jim Roppel, founder of Roppel Capital Management.<\/p>\n<p>Why? Because it could put further pressure on banks to conserve capital and cut back on lending, adding a drag to an economy already at risk of a recession after the Federal Reserve\u2019s steep interest-rate increases over the past 14 months.<\/p>\n<p>\u201cYou can\u2019t have a bull market if bank stocks are falling,\u201d said Roppel, who\u2019s a long-term bull but currently is mostly in cash with the rest in defensive plays like gold and gold miners. \u201cIt\u2019s like if an Olympic athlete had cinder blocks around their legs.\u201d<\/p>\n<p>Wild Week<\/p>\n<p>Concerns about the stability of the banking system contributed to a tempestuous week as investors aggressively bet against the stocks. While the share prices rebounded on Friday amid speculation the selling was overdone, many remained down steeply, with Western Alliance Bancorp sinking 27% last week and PacWest Bancorp plunging 43%.<\/p>\n<p>Individual investors \u2014 who were some of the market\u2019s most reliable dip buyers in 2020 and 2021 \u2014 scooped up some bank stocks amid the rout. In the week through Wednesday, they were net buyers in shares of Bank of America Corp., Truist Financial Corp. and SoFi Technologies Inc., data compiled by JPMorgan Chase &#038; Co.\u2019s Peng Cheng show.<\/p>\n<p>But there\u2019s continuing concern on Wall Street that the ongoing turmoil among regional banks could fuel a tightening in lending. In fact, traders are betting that the toll could be so great that they stepped up wagers that the Fed \u2014 which just signaled that Wednesday\u2019s rate hike may be its last \u2014 will start easing monetary policy as soon as July to stimulate the economy.<\/p>\n<p>Even so, Nancy Tengler, chief investment officer of Laffer Tengler Investments, said it\u2019s too soon to wade back into shares of beaten up banks. Instead, she\u2019s been focused on technology and consumer-related stocks that would benefit from a drop in interest rates, though her firm added shares PNC Financial Services Group Inc. after it delivered strong profit growth and growing deposits.<\/p>\n<p>\u201cIt\u2019s not smart to chase some of these other bank stocks,\u201d Tengler said. \u201cYou have to let the falling knife fall.\u201d<\/p>\n<p>Friday\u2019s stock-market rebound was fueled by the stronger-than-expected monthly jobs report for April, which tempered fears of a recession. Still, while the 1.9% rally in the S&#038;P wiped out most of last week\u2019s decline in the broad benchmark, the financial stocks in the index lost 2.7% over the five sessions.<\/p>\n<p>Scott Colyer, chief executive at Advisors Asset Management, said the S&#038;P 500 would have to slump to 3,600 or lower for him to become more optimistic about stocks, as valuations remain pricey. It closed at about 4,136 Friday.<\/p>\n<p>\u201cWe have to see have financials leading the way for the stock market to be in a sustainable uptrend \u2014 but that\u2019s not what\u2019s happening,\u201d Colyer cautioned. \u201cDon\u2019t pick up nickels and dimes in front of a steam roller.\u201d<\/p>\n<p>Most Read from Bloomberg Businessweek<\/p>\n<p>Why Launch Rockets When You Can Just Fling Them Into Space?<\/p>\n<p>Even $500 Million a Year From Google Isn\u2019t Enough to Save Firefox<\/p>\n<p>Airbus Bets on a Stretched A220 Jet to Beat Boeing\u2019s 737<\/p>\n<p>Data Science Is the Hot New Master\u2019s at B-Schools<\/p>\n<p>How a Dishwasher Engineer Challenged Elon Musk\u2019s Grip on Commercial Space<\/p>\n<p>\u00a92023 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; The selloff in US bank shares is threatening to push them below a technical threshold that could signal more pain ahead for the broader stock market.Most Read from BloombergTexas Mass Shooting\u2019s Bloody Images Add to Fervor in Gun DebateFootball Stadiums Belong in the SuburbsBank Stocks Nearing a Crisis-Era Threshold Raises Warning SignBuffett Reaffirms<\/p>\n","protected":false},"author":1,"featured_media":1926351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[5373,26129,16262,10467,20633],"class_list":["post-1926350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bank","tag-crisis-era","tag-nearing","tag-stocks","tag-threshold"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1926350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1926350"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1926350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1926351"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1926350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1926350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1926350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}