Chart of the Day - Wednesday, May 13th, 2020
May 13, 2020
Today’s Chart of the Day was shared on Twitter by Mark Ungewitter (@mark_ungewitter). It’s a ratio chart of the Bank Index ($BKX) versus the S&P 500 index over the past 15 years. This ratio made an all-time low today. In other words, Bank stocks are underperforming the broader market by the widest margin since the inception of $BKX. The Financial sector, more broadly, has been the worst-performing sector off the March 23rd low. Banks are critical to the overall health of the market. The fact that this industry group is performing even worse than it did during the Financial Crisis (on a relative basis) doesn’t exactly exude confidence in the overall health of the market right now.