Banks, VIX Merit ‘Positive Attitude’ on Stocks: Chart of the Day
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“A positive attitude toward equity investing is now in order” because U.S. bank stocks are doing relatively well and volatility is fading, according to Donald Coxe, a strategy adviser to Bank of Montreal.
The CHART OF THE DAY combines three indicators that Coxe used to draw this conclusion in his latest monthly report. The top panel tracks the ratios of two KBW Inc. bank indexes -- one for the largest U.S. lenders and the other for regional banks -- to the Standard & Poor’s 500 Index. The bottom panel depicts the Chicago Board Options Exchange Volatility Index, or the VIX.