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KBE: No Partying In The Streets

The SPDR S&P Bank ETF (NYSEARCA:KBE) has been red hot since the Nov. 7 presidential election, rising approximately 25% from $35.09 to a recent price of $43.36. Among the reasons given for the euphoric market rise are President-elect Trump's campaign promises to:

  • reduce banking regulations
  • stimulate the economy via tax reductions plus infrastructure spending, and
  • push for normalization of interest rates.

There are three reasons that I expect the bank earnings reports will result in a cooling off of KBE stock price: fundamental, political, and technical.  Read more...

by Steve Auger