Categories: FinanceNews

US Bank Stocks Lose 13% Amidst Global Financial Turmoil

For those investors who own US bank stocks, the past few days have not been pleasant by any means. Both Bank of America and Morgan Stanley dropped by 13% in value, Goldman Sachs, one of the big opposers of Bitcoin, is down 22% throughout 2016 so far. Diversification is essential for investors, and anything tied to US banks is not worth one’s time and effort.

US Bank Stocks In Dangerous Waters

Everyone with a basic understanding of the stock markets will have noticed how US bank shares have not been doing well over the past few years. In fact, many people expected these stocks to far off far worse than they are right now. The Brexit has sent stocks of Bank of America and Morgan Stanley down the deep end.

But they are not the only ones who are facing negative pressure right now. The KBW Bank Index has seen its biggest 48-hour decline since August of 2011. Keeping in mind how this group monitors 24 different US banks, things are looking not good, to say the least. Selling financial stocks is the best course of action for any serious investor right now.

Things will only get worse from here on out, by the look of things. Looming negative interest rates are putting a lot of pressure on US bank stocks right now. Whereas some experts expected the Fed to increase interest rates later this year, that scenario is looking more and more unlikely every day.

Related Post

The Brexit referendum is only making matters worse as well. Throughout all of the stock market turbulence, investors are desperately looking for new safe havens. Government bonds seemed to be an attractive option, but eventually, they will face similar results to what is happening to US banks right now.  Business leaders have lost confidence in traditional big deals linked to investment banks.

To make matters even worse, there is a growing amount of regulation banks have to deal with. These rules were put in place to prevent a new financial crisis, albeit it is doubtful these pieces of paper will stave off the inevitable. While it has been confirmed by the Fed all of the 33 US banks will survive during a deep recession; investors will be looking for alternative opportunities during these volatile periods.

Images credit 1,2

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Crypto Stalwarts Forecasted 800% Growth in Innovative Projects: VeChain, Rollblock and Polkadot!

This blazing crypto bull run has investors looking for the next top altcoins set to…

3 mins ago

Dogecoin Price Set To Recreate 36,000% Rally From 2021 After Pennant Formation

The Dogecoin price is back in the limelight, captivating the crypto world with its recent…

8 mins ago

Is XRP About to Explode? How Trump’s Victory Is Affecting XRP Price Amidst JetBolt Growth

Ripple’s XRP showed a 68% price increase in the last 7 days following Trump's victory,…

15 mins ago

Ethereum Down While Bitcoin, Solana, and JetBolt Skyrocket In End November 2024

Ethereum stumbles as Bitcoin surges past $97K, Solana eyes new highs, and JetBolt’s presale shakes…

3 hours ago

Top 5 Best Crypto Presales to Grab Now: Don’t Miss These December Week 1 Gems

The crypto market is a buzz with promising presales as 2024 draws the curtains. With…

4 hours ago

Cheems Surge On BSC Network: A Rising Star With Growing Market Value

The Cheems token on the Binance Smart Chain (BSC) is gaining significant momentum, surging by…

12 hours ago