2023-11-03 08:24:50 ET
Bank of America’s global research team noted on Friday that U.S. banks are at an 80-year low versus the S&P 500 ( SP500 ), while tech is at an all-time high versus the benchmark index.
"AI productivity miracle bull way more priced in than inflation," BofA stated in a note to investors, referencing the current valuations for tech.
BofA graphed relative price of bank stocks versus the overall S&P 500 going back to the 1940s. The data indicated that this measure, which saw a steep dropoff in the 1980s and a further dip around the time of the Financial Crisis, has recently reached an all-time low.
Banks vs. S&P 500
Meanwhile, BofA produced a similar graph tracking relative price between tech stocks and the S&P 500. That showed a measure ticking up to a new high, above the levels seen during the dot-com bubble of the 1990s and early 2000s.
Tech vs. S&P 500
Underlining BofA's point, 2023 has seen a decline in many high-profile banks, while big-name tech has largely seen an upswing. See the year-to-date returns on some name that support the above charts.
Bank Stocks: Citigroup ( C ) -9.7%, Bank of America ( BAC ) -17.6% , Wells Fargo Company( WFC ) -3% , and PNC Financial Services Group ( PNC ) -24.8% .
Tech Stocks: Apple ( AAPL ) +41.9% , Salesforce ( CRM ) +54.4% , Advanced Micro Devices ( AMD ) +68.4% , and Broadcom ( AVGO ) +57.4% .
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Chart Talk: Banks at 80-year low vs. S&P 500 and tech is at an all time high