The State of Banking Equities

Current evaluations of large bank equities indicate they may be overvalued compared to their potential for earnings and revenue growth. After a brief period of optimism, banks saw a significant surge in stock prices, with some companies experiencing increases of around 60-70%. However, following the election, there was a notable decline in these stock prices, with only a few financial entities like Fannie Mae and Freddie Mac continuing to see success. The possibility of overvaluation stems from various factors, including shifting investor sentiment and market dynamics.