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
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.