Nice simple set of data showing the change in prices from March 16, 2008 — the day Bear Stearns went belly up — to today, March 16, 2012.

JPMorgan Chase +22.3%
Wells Fargo +19.8%
Goldman Sachs (21.5%)
NYSE Euronext (50.1%)
Morgan Stanley (50.7%)
Bank of America (74.1%)
Citigroup (81.7%)

It is no coincidence that the 2 strongest banks — JPM and WFC — have fared the best, while the wo banks with the most problematic balance sheets — BAC and C — the worst.

Hat tip Capital IQ by way of Dealbook


DISCLOSURE: Clients are long JPM

Category: Bailouts, Investing

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “To Hell with the Rumor, Sell the News (Bear Collapse)”

  1. sellstop says:

    Are countries any different than banks? Will we pay off our debts? Our interest rates are starting to rise. “Oh, that just the economy picking up”. Sure. For now. If the economy picks up will we pay down our debt? I doubt it. We’ll give ourselves a tax cut and pat ourselves on the back for being so shrewd. Like we did last decade!

    Barry, I love your site! You do good work.

  2. Orange14 says:

    Disclosure: I jumped into WFC last year and am up 28%. They’ve put most of the bad stuff behind them and are sticking to what they know. Most impressive was the customer service when our local Wachovia branch converted over last September. They flew in a bunch of folks from existing WFC branches to help with the transition and it was mighty impressive. They could have just tacked up the red and gold shingle and pretended that was all that was needed.

  3. Pantmaker says:

    JPM have shorted that pig 4 times since 2008 as it gets close to that beautiful falling resistance line. I know you guys wear big boy pants but be super freakin careful here…we’re only a couple of bucks away from it. At least put it on your radar. Great weekend!

    Disclosure-How does it go…I may initiate a short position in the next 72 hours in one or more of the securities mentioned in my stupid post.

  4. Sechel says:

    So Buying Best of Breed is a good strategy. Makes sense…

  5. That is indeed an interesting look. I expect BAC to continue making nice losses for shareholders over time….

  6. Michael Olenick says:

    That’s not a disclosure: that’s bragging, albeit well deserved bragging.

  7. RW says:

    Good comparison of the (possible) impact of fundamentals although it is worth remembering that we’re still not sure exactly what those fundamentals are and even the returns of JPM and WFC remain pretty pissant compared to just about any non-financial sector anyone cared to buy in April of ’08; i.e., at least a double for everything from REITS to emerging markets to small caps.

    Avoiding financials was still the best call for anyone with the stones to play the ’08 crash long.

  8. beentherdonethat says:

    Didn’t you forget Wachovia on that list? Or should I say does anyone remember Wachovia… Virtually the same market cap as Wells at that time.


    BR: I recall they got scooped up by Wells Fargo for pennies plus a giant tax break

  9. donna says:

    JPM/Chase is still an evil, evil company, though.

  10. constantnormal says:

    At the risk of provoking a firestorm, if I were a client, I would rather have seen those JPM holdings in AAPL (up 379% 2008-03-16 – 2012-03-16).

    So I see this as a simple matter of disclosure, certainly not bragging.

    The bragging should be that the clients did not lose money, and even beat the markets after fees & expenses (although that would need a bit more disclosure to ascertain).

  11. constantnormal says:

    Correction on my stated AAPL growth (which I did not see, not having held it continuously during that span of time (my bad)) … the above numbers came from Google Finance, looking at Yahoo Finance historical prices, the gains came in at only 362.5%.

    The point here is not to promote AAPL (it needs no such thing), but to point out that there are many other stocks that have outperformed the banksters over that specific span of time. Here’s another example: TSM, up 81.7% sporting a 3.5% current dividend yield.

    Dig around a bit, and you’ll find many others that have outperformed the banksters.

    JNJ, just to pick one at random, in an industry I do not follow, up 18.9% and currently sporting a 3.5% dividend yield. Not quite an outperform on that one, but for a random big-name-recognition stock it ain’t bad.

    Here’s another: PG 13.6% with a current dividend yield of 3.1%

    I presume that the cited bankster figures are exclusive of the gains from dividends …

    Given the stench surrounding the banksters, and the 2.7% current yield on JPM, I’m ecstatic to not be owning it.

    I see the downside risk from an overdose of bankster hubris as pretty significant … but that’s just my personal comfort zone, and I have my own blind spots for risk, same as anyone else …