Another bank earnings season is coming upon us, and no one is feeling too excited. Yet excitement isn’t what makes stocks like
Citizens Financial Group
Make no mistake, banks have been a lousy investment this year, just as so much else has. The
SPDR S&P Bank
exchange-traded fund (ticker: KBE) has dropped 16.5% in 2022, faring only slightly better than the
which has fallen 23.6%. But the near symmetry in performance is even more shocking given the expectations heading into 2022. Consumers and businesses were expected to resume borrowing after more than a year of pandemic stimulus buoyed their cash piles. Banks were expected to earn more on those loans as the Fed lifted interest rates five times this year from a range of near-zero to 3.25%. It should have been heady times for the out-of-favor sector.