Economics, Info-Graphs

KBW Bank Index Approaching Relative Performance Lows

KBW Bank Index Approaching Relative Performance Lows

The KBW Bank Index, which consists of 24 banks, is approaching 2008 and 2011 lows relative to the S&P 500. In the chart below, we plot the KBW Index against the S&P 500 going back to September 1992 which is when the KBW Bank Index began. We have indexed the chart at 100 starting in September 1992. Banks have underperformed the S&P 500 by nearly 37% since 1992 and only twice, in 2008 and 2011, have banks underperformed more. In 2008, banks had underperformed by nearly 48% and in 2011 banks had underperformed by about 43%.

KBW Bank Index

It’s not just banks in the United States that have been getting pummeled either. Not a single stock in our GKCI DM Banks Index is trading above its 200-day moving average. The median developed world bank is down 20% over the past year and 85% of developed world banks made a new 200-day low on January 20th. This was a greater percentage of bank stocks that made a new low in either 2008 or 2011.

KBW Bank Index

KBW Bank Index

KBW Bank Index Approaching Relative Performance Lows by Eric Bush, CFA – Gavekal Capital Blog

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