Citigroup Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Licking their wounds, investors bid up various large bank stocks today while hoping for some good news from Federal Reserve Chairman Ben Bernanke on federal interest rates. Bank of America (NYS: BAC) saw a 9.3% bounce, Wells Fargo (NYS: WFC) gained 6.6% at most, and JP Morgan Chase (NYS: JPM) notched a 5% intraday recovery. Today, none of these shares trade anywhere near Friday's closing price.
Now what: Citi's enthusiasm faded as the day wore on, even though the Money Beard promised to keep interest rates at record lows at least through 2013. This crisis seems to have reminded investors of all stripes that our banking system is brittle, and stocks are being punished accordingly. All told, Citigroup shares have lost 39% of their value in 2011, far below the S&P 500's 11% fade -- and might actually belong at these ignominious levels.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of JPMorgan Chase. The Fool owns shares of and has opened a short position on Bank of America. The Fool owns shares of and has created a ratio put spread position on Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.
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