Well, Wall Street’s heavy hitters are at it again and rolling in the dough.
Earnings just came out and the banks are KILLING it.
While it might sound like the usual banker party – there’s more to these earnings reports than just fat bonuses and champagne…
With Goldman Sachs, Bank of America and Citigroup all topping analyst expectations –
The mood on The Street has been elevated.
However, there’s more to this story than meets the eye…
Like all most publicly traded companies – recording better-than-expected profits is a group effort of what’s going on in the sector, the market as a whole and especially who’s steering the ship.
That said, there’s something different going on right now…
What’s really going on behind the scenes may shock you – whether you’re holding stock or just watching from the sidelines.
You may think you’re ready for this story – but once you learn all the details – you’ll probably breathe a sigh of relief.
Let’s dive in, shall we?
Yes…
Bank of America (BAC), Goldman Sachs (GS), and Citigroup (C) all exceeded third-quarter profit expectations recently…
And it has investors like you and me wondering what it means for them and the rest of the market.
Because contrary to popular belief…
It’s not just another day at the office for Wall Street’s big fish. They’re swimming in case – even though they’ve hit some bumps along the way.
Let’s break it down:
First up, Goldman Sachs…
The golden child of investment banks saw its profit jump a whopping 45% as earning reached $3 billion – up from $2.1 billion in the same quarter last year.
Not too shabby for a company that always seems to find a way to squeeze every drop of profit out of the market, right?
Apparently, Goldman’s secret sauce is not just in trading – but also in investment banking fees that are keeping its coffers full.
Next on the podium, we’ve got Bank of America.
Yes – their profit fell – but here’s the rub…
It dropped by only 12% when the so-called experts predicted a much uglier 16% nosedive.
Sure, it has some bad loans hanging over its head that likely won’t get paid back – but that’s just small potatoes when you consider their gains in trading, asset management and investment banking fees.
If anything, BoA’s performance shows that a little stumble doesn’t mean you’re out of the game.
And finally, Citigroup slid in with a not-too-terrible 9% dip in profit…
Landing at $3.2 billion.
The bank took a hit with losses in its credit card business – but no need to play the world’s smallest violin as its other ventures – including services, banking, wealth management and U.S. personal banking, actually saw revenue climb.
Citigroup proved it’s more than just plastic debt – even if some credit card holders decided to ghost on their payments.
That all said, here’s the deal…
These earnings reports are a strong signal that the market is on solid footing.
Investment banks are flexing their muscle…
And their stock prices are keeping pace.
For instance, Goldman Sachs leads the pack with a 38% year-to-date gain – followed by Citigroup with 32% and Bank of America at 27%.
To put that in perspective – they’ve all outperformed the S&P 500.
While Warren Buffett’s Berkshire Hathaway has been trimming its stake in Bank of America – it still holds about 10% of the company.
Guess the Oracle of Omaha isn’t completely ready to walk away from the table just yet.
So, whether you’re a market player or just watching from the cheap seats…
These numbers show confidence is high.
The economy’s doing its thing – and these banks are cashing in big time…
Just don’t expect an invitation to their celebratory yacht parties anytime soon.
So, if you’re contemplating getting into one of these stocks – you definitely need to do your research to see if NOW is the best time to act.
Or…
You could just become a member of GorillaTrades and let us do all that work for you.
Our system operates off data – plain and simple – and if the numbers are right, then our system generates a recommendation.
Do these banks have the right numbers?
Well, that’s something you’d know as a member of GorillaTrades – as there would be some picks in your inbox.
I’d love to show you how it works – but it’s one of those things that you need to be inside to see how it works.
We’d love to have you with us on our next recommendations…
But we also understand that there are people who’d rather do it on their own.
Regardless of what you choose, just know we’re here if you ever need us.
Until then, keep your eye on the banking industry – their actions show that the economy may not be on the shaky ground many think it is.
“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” – Warren Buffett
