To speak with a financial advisor
please call: 212.533.5895

The Case For Adding Bank Stocks

Looking at the valuations of defensive stocks vs. cyclical stocks, the best gains may come from cyclical stocks. The best forward returns are likely to come from bank stocks such as JP Morgan Chase and Wells Fargo. These stocks come with more than their fair share of risk.  However, the potential gains prove they are worth it. Wells Fargo is expected to earn 4.02 in 2014. Given its current price of 46.68, the expected PE ratio is (46.68/4.02) 11.61. Looking at the valuation history of Wells Fargo over the last five years below, you can see that it is currently trading at the low end of its valuation range.

WFC PE Ratio (TTM) Chart

WFC PE Ratio (TTM) data by YCharts

Assuming that Wells Fargo reaches a valuation of 15 times earnings, the expected value by the end of 2014 is (15 * 4.02) $60.30. This represents a return of ((60.30-46.68) / 46.68) 29.17%.


JP Morgan Chase shows a similar enticing return over the next year. JP Morgan Chase is expected to earn 5.96 in 2014. Given its current price of 58.78, the forward PE ratio is (58.78/5.96) 9.86.  The valuation history of JP Morgan Chase over the last 5 years below shows that it is also trading at the low end of its valuation range.

JPM PE Ratio (TTM) Chart

JPM PE Ratio (TTM) data by YCharts

Assuming that JP Morgan Chase trades at 13 times its expected 2014 earnings, the expected price at the end of 2014 is (5.96 * 13) $77.48. This represents a potential return of (($77.48 – $60.30) / $60.30) 28.85%.

The current backdrop of an improving housing market and job market along with rising interest rates should be beneficial for bank earnings going forward.  Wells Fargo and JP Morgan Chase earn fees that go along with home loans and earn more money from deposits as interest rates rise. Even more importantly, it is not likely that these banks will be faced with major defaults on loans as the economy improves.

Given the attractive valuations of banks along with the improving US economy, these stocks make for compelling investments in 2014.


  1. Johnk476

    I feel that is among the so much significant information for me. And i’m glad studying your article. However should observation on few general issues, The website taste is ideal, the articles is in point of fact excellent D. Just right activity, cheers

  2. I simply want to tell you that I am just very new to weblog and seriously savored you’re web blog. Most likely I’m going to bookmark your site . You absolutely have great well written articles. Appreciate it for sharing your web-site.

  3. I simply want to mention I’m very new to weblog and certainly loved your blog. Almost certainly I’m likely to bookmark your website . You really come with really good posts. Kudos for sharing your website.

  4. Thank you for this article. I’d personally also like to convey that it can often be hard if you are in school and starting out to initiate a long credit ranking. There are many individuals who are merely trying to make it and have a good or good credit history can often be a difficult point to have.

  5. I was recommended this blog by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my trouble. You’re wonderful! Thanks!

  6. You really make it seem really easy together with your presentation however I find this matter to be actually something which I feel I might by no means understand. It seems too complex and extremely huge for me. I am taking a look forward in your next publish, I will attempt to get the hold of it!

  7. I like this post, enjoyed this one thankyou for putting up.

  8. I really enjoy the article.Much thanks again. Fantastic.

  9. Major thankies for the post.Really thank you! Really Great.

  10. Some really prime content on this site, saved to my bookmarks .

  11. 681332 445252Glad to be one of the visitors on this awe inspiring web site : D. 58035

  12. Loma Neave

    I would like to thnkx for the efforts you’ve put in writing this site. I’m hoping the same high-grade web site post from you in the upcoming as well. In fact your creative writing abilities has encouraged me to get my own website now. Really the blogging is spreading its wings rapidly. Your write up is a good example of it.

  13. Thanks for the sensible critique. Me & my neighbor were just preparing to do some research on this. We got a grab a book from our area library but I think I learned more from this post. I’m very glad to see such excellent information being shared freely out there.

  14. I simply wanted to appreciate you once more. I’m not certain what I would’ve implemented without the actual points discussed by you on my subject. It has been a very intimidating circumstance in my opinion, nevertheless seeing the professional manner you resolved the issue forced me to leap with gladness. I am happy for this guidance and as well , sincerely hope you really know what a great job your are getting into educating many others through the use of a site. More than likely you have never come across any of us.

  15. You have brought up a very good details , thankyou for the post.

  16. Simply wanna say that this is handy , Thanks for taking your time to write this.

  17. I have been browsing online more than three hours these days, but I by no means discovered any interesting article like yours. It is pretty worth sufficient for me. In my opinion, if all webmasters and bloggers made excellent content as you did, the internet might be much more helpful than ever before.

  18. Fantastic blog post.Really looking forward to read more. Really Cool.

  19. }

  20. Dorine Swim

    Thank you a lot for sharing this with all of us you really understand what you are speaking about! Bookmarked. Kindly also talk over with my web site =). We will have a hyperlink alternate arrangement among us!

  21. This is merely what I’ve been in explore of all the calculate. Don’t stop updating this website.

  22. I really like and appreciate your article. Fantastic.

  23. Ben Brownrigg

    Sweet blog! I found it while searching on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Cheers

  24. I enjoy reading a post that can make men and women think. Also, many thanks for allowing me to comment!

  25. Brendan Mcilwraith

    You actually make it seem so easy with your presentation but I find this topic to be actually something which I think I would never understand. It seems too complex and extremely broad for me. I’m looking forward for your next post, I

  26. I must thank you for the efforts you’ve put in writing this website. I really hope to check out the same high-grade blog posts from you later on as well. In fact, your creative writing abilities has encouraged me to get my own blog now

  27. Everything is very open with a really clear description of the challenges. It was really informative. Your website is useful. Many thanks for sharing!

  28. It’s nearly impossible to find experienced people about this topic, but you seem like you know what you’re talking about! Thanks

  29. Howdy! I could have sworn I’ve visited this site before but after browsing through some of the articles I realized it’s new to me. Anyways, I’m certainly delighted I discovered it and I’ll be book-marking it and checking back frequently!

  30. Everyone loves what you guys are up too. Such clever work and coverage! Keep up the amazing works guys I’ve added you guys to my own blogroll.|

  31. jordan Low Bred 11s

    Typically these interns are 3 6 months in duration and during this time all five of the interns are performing useful and valuable tasks while being evaluated by local management in China by those that wear the name of boss This feature in itself reduces turnover rates by 50% since positions can be filled on a and buy basis instead of putting the full burden and risk of new hires on the shoulders on HR staffers..There wasn a lot I could do, so I felt helpless. Obama found time to make 45 trips to Iowa but only two trips to Iraq.”. They certainly are conscious of him and want his family to know and have as much of them as they can give. That why it is important to speak with your doctors and a personal injury lawyer to understand your options for physical and financial recovery after a serious accident..
    jordan Low Bred 11s

  32. I just like the helpful information you provide for your articles. I’ll bookmark your weblog and test again here regularly. I am relatively certain I will be informed a lot of new stuff proper here! Best of luck for the following!|

  33. gjpabqnl

    A member of Reid’s staff tells CNN that the senator made the decision to retire with his family around Christmas, but told his staff that he wanted two months or so to sit on it before announcing it. louboutin outlet Otherwise, feel free to leave it long and then you should be able to give it a good cut on your return, while the long grass will have protected the strong roots underneath. Grass invariably grows back healthily with the autumn rains. If you have a vegetable garden, give it a thorough soaking so the water goes deep down into the ground to the roots, as late as you can before you leave. If you have neighbours, get them to harvest any ripening produce (either for you or for themselves). w coach
    SirLance wrote: coach outlet online Lateness. We are fast and nimble at Utilitywise, which is how I like to work.
    The money is to be divided among 30 schools in nine school districts most affected by Sandy and will upgrade their computer technology to position them for the new statewide standardized testing to start in the spring of 2015. oakley sunglasses They were passengers in a car that collided with another vehicle about 3:30 p.m. in the 2000 block of N. Hi-Mount Blvd. v burberry outlet
    In fact much of the performance was too good for the team to be written off because of two bad overs at the death. coach outlet online In a game North Geelong was expected to dominated, the Roos have shown a competitive instinct in a tough, contested game.
    m ZW50cyBzaG93aW5nIHRoZXkgcmVzaWRlZCBpbiBPaGlvLiBUaGFua2Z1bGx5LCB0aGF0IGVmZm9y coach outlet Why local NGOs matter toms
    As the Dean explained in his introduction, the 40 days of Advent last until Candlemas, so this really was the last concert of Christmas. RUNNING COSTS:
    鈥淭he last time I was here, Kerry Feldman, who was a teammate of mine in 1957, said, 鈥榃hy hasn鈥檛 someone wrote a book on Ed Bayne?鈥?and we said, 鈥榃hy don鈥檛 we do one?鈥?鈥?Haroldson said. prada But the NSW success has also pointed up a major difference between the leadership styles of the likable Baird, and the polarising Abbott 鈥?the former being an accidental premier who inherited the top job mid-term to become his party’s greatest asset, and the latter being a career politician who bludgeoned his way into office but has never grown on voters. e prada
    We pay a lot of money in council tax and are constantly asked for the maximum possible increase without having any say on whether we are willing to pay it. We have every right to ask for an explanation as to what is going on. Do I want to pay an extra 拢10 on top of the 拢60 I’ve already been asked to pay? Not when they don’t appear to be in control of what is going on. prada handbags After the early loss of Aaron Finch, who played for Yorkshire last season, Stokes went in with the score on five for one and departed at
    To nominate a local company or find details on Best Places to Work, visit coach factory outlet However, Malpani is not optimistic that the reduced price will be low enough to make the drug widely accessible. Furthermore, MSF believes Gilead is likely to offer middle-income countries – like China, Iran and Ukraine – a higher pricing strategy than that given to poor countries.
    But Hillie, 2, of Thiensville, and Snowy, 10, of Milwaukee’s south side, already are proving they were the right picks among the nine dogs that tried out for the part. They’re sticking with the script and learning their roles. michael kors outlet J A Leaning not out ……………………….. 50
    Amanda Knox and Diane Sawyer, 2013 michael kors bags Member for Casuarina Lauren Moss during question time accused the government of “appalling neglect” of children.
    f they-all-resign-from Stephenson said he’d definitely use the money to take his family out for dinner, rather than save the check.
    Hawthorne Hill Farm:”Creative Collections” shopping market features home d茅cor, antique and vintage items, quilts, furniture and accessories, 10 a.m.-5 p.m. May 15-17. 16370 W. Small Road, New Berlin. coach factory outlet MTM seeks improvement c cheap oakleys
    鈥淲hen Durham became a first-class county, the aim was always to give North-East youngsters an opportunity to make at it the very highest level with their local side,鈥?said Cook. 鈥淭hat was the raison d鈥檈tre for the academy, and remains as relevant today as it ever was. gucci outlet But Walker said Wednesday he couldn’t commit to resigning by then. He said he wants to make sure there will be a smooth transition to his successor before he leaves.
    x for success. We offer the chance for michael kors outlet It was the odyssey that created Fermor, who as well as growing into one of the English language’s greatest craftsmen became a war hero the decade after his walk. His role in the kidnapping of a German general during the height of the war in Crete would go on to be immortalised in Ill Met By Moonlight. q
    He said the wood-fired pizzas concept has been highlighted by a number of celebrity chefs and because of that he believes it is becoming more and more popular with people. 鈥淚 don鈥檛 feel like I鈥檓 gambling my life on it,鈥?she says. toms shoes outlet
    鈥淓ven for the individual who has been to the end of the Earth and through hell,鈥?Fivecoats said. michael kors Ukrainian government troops and pro-Russian rebels, who blame each other for breaching the ceasefire signed on February 12 in Minsk, Belarus, have failed to demonstrate that they’ve withdrawn heavy weapons in line with the truce, according to the OSCE. Ukraine, the US and the European Union accuse Russia of sending troops and weapons to support the separatists, an allegation that Russia denies. n
    A report to the council鈥檚 Finance and Policy Committee from Denise Ogden, director of regeneration and neighbourhoods, said: 鈥淭he building has been vacant for a number of years and the dereliction is having a negative impact on the attractiveness of the resort and the wellbeing of the local residents. coach outlet “They are some of the only federal prisons operated by for-profit companies instead of being run as federal institutions by the Bureau of Prisons; they house exclusively non-citizens; and they are low-custody institutions with lesser security requirements than the medium and maximum-security institutions run directly by BOP,” the ACLU says.
    A: It鈥檚 not a reboot or a sequel or a prequel. It stands alone. We鈥檙e introduced to a world that we鈥檝e seen before. However, when Reese is sent back to save Sarah Connor, something has happened in the process and everything has changed. All the information he has for the mission and the task at hand is different. Therefore, things have been reset and that鈥檚 where we move forward from. That鈥檚 about all I can say. michael kors outlet Elijah, who lived at Low Side Farm, Bowbank, was clearing the Lunedale section of the Middleton-in-Teesdale to Brough road (now the B6276) with his brother, Arthur, of Gates Side Farm, Newbiggin, o
    This is a blatant case of an asset rich Charity being hijacked. The new manager at Botton is the fourth in 4 years. He is a housing expert. CVT think they can move learning disabled people around like cattle. They want to move the older villagers into the centre of the Village because of increasing needs . Talk about forced retirement. More like they want to free up houses to redevelop into independent hutches, sorry, living units. Great Ayton鈥檚 dismal day saw them bowled out for 86 by with Craig Symington (5-21) swopping wicketkeeping duties with injured brother Marc and ending up one of the star performers. A half century by Jonathan Rickard included two big sixes to finish the match in 14.3 overs on 90 for a ten-wicket success.

  34. You’re so cool! I don’t think I’ve read something like that before. So great to discover somebody with unique thoughts on this topic. Really.. thank you for starting this up. This website is something that’s needed on the internet, someone with a bit of originality!|

  35. ebrjzvhdb

    “About two weeks ago, I saw a picture actually on Peaberry’s Facebook page and I just looked at it and said, I have to have that, so,” said Emily Sarkis, of Simsbury. michael kors outlet Agriculture Minister Barnaby Joyce told ABC television: At times they might not like Tony Abbott but they think he’s strong … They just don’t have any thought whatsoever about Opposition Leader]Bill Shorten. o coach factory
    If, at the end of all this you feel in need of liquid refreshment, head for Charing Cross and the Sherlock Holmes pub where a pint of Watson鈥檚 Wallop awaits you. coach outlet Sridar (4025226) 3.15, 6.15 p.m.
    ZSBqb2ludCB2ZW50dXJlIG9mIFNhcHBvcm8gSW50ZXJuYXRpb25hbCBhbmQgVG95b3RhIFRzdXNo true religion outlet Colton also suffered brain damage and has shown developmental delays. At the age of 10 months, he was functioning at the level of a normal 6-month-old, according to his doctor. k coach outlet
    braxy12 wrote: Uzbek media showed him dancing ata vernal equinox ofNowruz inthe Uzbek capital Tashkent last weekend andhe appears tohave thesupport ofthe political elite.
    y No short policy such as this can spell out all possible instances of material or behavior that we might deem to be a violation of our publishing standards, and we reserve the right to remove any material posted to the site. oakley sunglasses outlet We are talking about the US, Europe, and the Far East. It is a vast market. It requires a lot of money because it entails many trips by the team, for focus groups, and getting to know the mentality. We work hard to make the product easy-to-use, fun, and uncomplicated, and it needs to suit every user, anywhere in the world, perfectly. michael kors outlet online
    “We needed to be at the very top our game to have got a win over there. We weren’t quite and that was the frustration. oakley sunglasses 鈥?Spec:鈥?Engine: 鈥?984cc/four cyl/turbocharged/petrol.
    I agree with聽 Al Makin that Failaka has suffered from neglect. Apart from Failaka Heritage Village and Wanasa Beach nothing has ever been done on the islands especially in regard to street lighting and the infrastructure of the island itself. Failaka Island is now like an old American frontier town, with bachelors running rampant over the island, quad bikes, motor bikes and buggies damaging the flora and fauna of the island and having total regard for their heritage. Since opening tens of thousands of visitors have enjoyed the island and will continue to do so. coach outlet By Lidia QattanKuwaiti Writer, Artist n burberry outlet
    The 18-year-old only joined the company as an apprentice last year and is delighted his hard work has paid off. michael kors outlet online Venkatesh Valluri
    The engine and CVT combo are efficient, the Outback being rated 25 mpg city and 33 highway by the EPA. I got just 19 mpg, but much of my drive was during sub-zero weather and 80% city driving. “I still can’t realise that it’s my dream,” said Gavrilova, who said she had dreamed of beating Sharapova ever since she saw her fellow Russian beat Serena Williams in the Wimbledon final in 2004.
    Get your search off to the right start by identifying the size and style of house you are seeking. It s also helpful to make a list of home features that are important to you i.e. ideal number of bedrooms, bathrooms, formal dining room, finished basement. Be sure to include both must-have amenities and can-live-without options. Chatting in the pub in this pleasant, Norman village (it鈥檚 thought Carlton was first destroyed by the Normans before they rebuilt it), my only criticism of the experience was not being able to stay longer.
    Obviously momentum is everything, Chapin said. I can’t say how much different it would be, but we don’t have the depth. We’re just trying to compete this year. We’ve got a bunch of young guys. debacle: they are telling me to fly out tomorrow and spend a full day stranded here 鈥?Miriam Thomas (@andmiriam)
    w kys/girls skinheads..wigan wanna beas.or lumby bumpy whatevers…with our kids etc…we actually get on…you noticed…one thing collectivly we dont like is anyone blagging us….simple…..yes if a scoot isnt going to iow or brighton hope it rides out for you….Get in touch Mike….im not shy. coach outlet online Favourite book?
    Adams actually did get to know Jones. He said the two spoke several times, adding he’s definitely a route-runner, a real disciplined guy, somebody I look up to. Not only did he bench three of his regulars in Seraphin, Humphries and Butler, but he changed the playing style. z true religion outlet online
    Tickets are available in advance priced 拢10 for adults and 拢4 for children from Castle Hill Bookshop, Richmond Tourist Information, The Wives Kitchen, and Richmond School, all in Richmond; at Studio 19 in Catterick; at Reeth Post Office; at Wobbly Dog in Leyburn; and online at “It’s a musical game where you have notes coming at you, demanding you to move every couple of seconds,” said Dr. David Reinkensmeyer, lead researcher UCI.
    x You may not post copyrighted material from another publication. (Link to it instead, using a headline or very brief excerpt.) burberry outlet 鈥淎ir conditioning is still relatively uncommon in India and other low-income countries, but this is poised to change dramatically as incomes rise around the world,鈥?said the study. x
    This will no doubt be the case with the picture here of a popular teacher, Miss Diane Goldsborough, with her class before they left the school in the late 1980s to go on to secondary schools. Motorists can check that their vehicle is on the Motor Insurance Database at 锘?a href=>coach factory outlet
    Alper at . Kulanu is polling at around 9 to 10 seats. If Mr Herzog and Ms Livni could join with Mr Kahlon, Yesh Atid and the ultra-Orthodox parties who are polling a combined 13 seats, they may be able to form government, but analysts are warning this scenario is unlikely. f coach outlet online
    Forensic medical examiner Dr Stephen Hicks, called by the defence to give evidence, said examinations conducted in the manner described by Dr Maung would have been 鈥渁ppropriate鈥?in the circumstances. oakley glasses Be suspicious of unsolicited emails which say they are from your bank or the taxman and do not click on any links in the email;
    MCB0byAyMDE0LjwvcD48cD5UaGUgc2Vjb25kLWxhcmdlc3Qgc291cmNlIHdhcyB0aGUgTmlvYnJh coach factory outlet Once-a-month, Joyce had to stand on a table and polish the oak beams in the house with wash leather, vinegar and water, but her most exhausting task was to carry the wireless battery two miles to a garage and collect the charged one to bring home. x
    If you love eating as much as dancing, you can easily devote an equal amount of time to each pursuit on a Strictly cruise – and it makes it twice as much fun. One evening, dressed in my favourite floor-length lace evening gown, to adhere to the ship’s black tie dress code, I dine in Seventeen – one of the ship’s more exclusive restaurants. louis vuitton outlet The central government says that countries along the land and sea routes in the “Belt and Road” initiative account for 63 percent of the world’s population and 29 percent of global GDP. Trade between these countries and China reached more than $1 trillion last year, 26 percent of China’s total trade value.

Leave a Reply