The world has a funny way of not ending.

Just when the gloom couldn’t seem much darker, here comes the cavalry. This time it took the form of Wells Fargo, which not only met earnings expectations and raised guidance, but actually had the audacity to raise the dividend. Don’t they know we’re in a banking crisis? They’re supposed to be asking investors for more capital, not giving it back!

Other banks have followed suit. JP Morgan earned 60% more than expected. PNC Bank’s earnings were up 10% from a year ago. As a result of all this good news, bank stocks have risen about 25% in the past couple days. While this doesn’t erase this year’s decline, it does lift the cloud a little.

Warren Buffet says to be brave when others are afraid and to be afraid when others are brave. Judging from the way the market’s been behaving, this may be a good time for bank investors to show some grit.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-03T20:14:42+00:00July 18th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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