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This is, by the way, a problem I see with a lot of public policy - in a market system, what's good for companies is not necessarily what's good for the system.
by azernik 8y ago
This is, by the way, a problem I see with a lot of public policy - in a market system, what's good for companies is not necessarily what's good for the system.
Steve Eisman puts this well in [1] when talking about why he's investing in bank stocks even though he thinks prospective rollbacks in Dodd-Frank reforms are a bad idea: "There's two issues. There's what I think about the financial system and what I think about financial stocks, and the two don't necessarily correlate."
[1] https://youtu.be/NJodqhzqPKQ?t=4m10s https://youtu.be/NJodqhzqPKQ?t=4m10s
- ctchocula 8y agoI liked the Steve Eisman character from The Big Short, but I was disappointed his prediction bank stocks would do well didn't play out. KBE: 44.49 Jan 30, 2017, 47.82 July 11, 2018 = 7.48% price growth (I couldn't find numbers for total return and too lazy to compute from distribution history) VFAIX: 20123 Jan 30, 2017, 23569 July 11, 2018 = 17.1% total return VFIAX: 22291 Jan 30, 2017, 27729 July 11, 2018 = 24.4% total return KBE: SPDR Bank ETF VFAIX: Vanguard Financial Index VFIAX: Vanguard S&P 500
- azernik 8y agoI find that super interesting - especially since they seem to have underperformed the 500 even after the deregulation bill passed in March.
- collinmanderson 8y agoKBE total return is about 12.8% (42.70 to 48.19) based on http://stockcharts.com/freecharts/perf.php?KBE,VFAIX,VFIAX http://stockcharts.com/freecharts/perf.php?KBE,VFAIX,VFIAX (those numbers are adjusted based on distributions and splits)