Whats with bank stock investors. Why can they make up their mind?
The typical bank stock investor is a guy who recognizes that the company he is investing in his highly cyclical. Therefore he is always seeking out some piece of information that tells him where he stands in the cycle. The most important factor in that analysis is the quality of the loan portfolio. He doesn’t look at the quality of management, the size of the franchise, or the power of the company. He is only looking to see if loans are good or bad. The fact that Jamie Dimon is a superb manager, nobody really cares. They should realize that Dimon’s team will generate higher returns over time. All they do is say that commercial real estate looks bad, so sell the stocks. Or, wait a minute, the economy is looking better, buy the stocks! It gets farcical. You don’t have long-term investors in bank stocks. The core reason is that bank managements have failed to prove that they know how to deal with the cycle. If you look at their business results, they look like roller coasters at Coney Isl
