Bank earnings have been tough to digest. Nearly all of the big banks topped third-quarter forecasts, and their stocks popped a bit. Yet the sector hasn’t caught on, trailing the market since earnings season began.
The disconnect reflects the fact that investors are looking ahead to 2023—and don’t like what they see. The economy may be headed into a recession within nine months, predicts JPMorgan Chase (ticker: JPM) CEO Jamie Dimon. If a recession settles in, it would put banks back on their heels after a strong recovery in core banking and capital markets from the pandemic-era lows.
Source: news.google.com
