Bank Stocks Already Had a Wild 2020. Then November Got Even Crazier…

Bank Stocks Already Had a Wild 2020. Then November Got Even Crazier.

  • The day after the election was one of the worst ever for bank stocks; three trading sessions later, they had one of their best days

The KBW Nasdaq Bank Index is headed for its worst year on record, compared with the S&P 500.

PHOTO: ANDREW SENG FOR THE WALL STREET JOURNAL

On the first Friday night in November, bank investor Ben Mackovak sat outside his Cleveland home smoking a cigar, contemplating the ruin in his portfolio.

It had been a brutal year and he’d just taken another beating. The day after the U.S. election, the Nasdaq Bank Index he uses as a benchmark suffered its worst underperformance against the S&P 500 since 1987. Mr. Mackovak no longer saw a path to the higher interest rates that banks need to make more money in the coming years.

“It…

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