by Gene Kirsch, Senior Banking Analyst
While the last Weiss Ratings undervalued portfolio focused on domestic banks, this portfolio will focus on global banks including those in the U.S. that meet the undervalued criteria we established. As of April, the domestic portfolio was up over 17%. We’re going to try to beat those returns by including both international and domestic banks that do business globally in our undervalued bank stock portfolio.
The basis of this analysis of global banks will be Weiss’ new global bank ratings (GBR) set to be released in early June. These include ratings for the largest 200 publicly traded banks worldwide.
As you’ll undoubtedly remember, domestic bank stocks were annihilated in 2011, especially the large money-center banks like Bank of America (BAC) (down 58%), Citigroup (C) (down 44%) and Wells Fargo (WFC) (down 41%). Global bank stocks have not fared much better with some of the largest banks in the world suffering losses—Deutsche Bank (DBK.DE) based in Germany (down 24%, Euros); Mitsubishi UFJ Financial Group (8306.JP) based in Japan (down 23%, Yen); HSBC Holdings, PLC (HSBA) based in the United Kingdom (down 19%, British Pounds) and BNP Paribas SA (BNP.PA) (down 34%, Euros). So, if you’re looking for good investment deals in the global bank sector, this might be the time.
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