Valuation of U.S. financial stocks have been falling, so far has dropped to the equivalent of a recent trend of financial crisis never happened rebound level.
According to data compiled by Bloomberg, S & P 500 Index constituent stocks in banks, insurance companies and asset management companies an average of 12.3 times earnings, close to the bull market since March 2009 the lowest level since the beginning. The data also show that the S & P 500 index's 10 stocks, financial stocks with low price-earnings ratio is in the second level, but according to analysts forecast a net profit of financial services companies will grow by 18%.
Pioneer Investment Company (Pioneer Investments) and the New York asset management company Gamco Investors Inc, said that while more than 50 years, the highest since the stock market rise has pushed the S & P 500 index higher than the Lehman Brothers collapse in September 2008 when the level, but the price-earnings ratio increase is not that the government stop providing stimulus measures after the rally in bank stocks may be declared an end.
At the same time, Oppenheimer Funds (OppenheimerFunds Inc) and so optimistic about the prospects for financial stocks, investment company, said that the economy is expected to grow 3 years means that financial stocks will increase, because the company profits and dividends will be growth.
Pioneer Investments in Boston, a fund manager John - Cary (John Carey), said: "To get investors to buy financial stocks which pay higher than average price-earnings ratio may also need some time. All of us are waiting for a signs that financial companies can not rely on government support and subsidies can be restored, the case of health. "Vanguard investment company manages about 2,500 billion dollars.
U.S. retail sales in the last year by the most significant since 1999 the annual growth rate, coupled with higher than expected industrial production, suggesting that the U.S. economic recovery process will be enhanced. According to Bloomberg News the average estimate of 67 economists, the U.S. Department of Commerce is scheduled for publication in the January 28 report will show that last year's fourth quarter GDP growth rate of 3.5% per annum.