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00:00 Speaker A
Victoria, always nice to see you. Uh, got to start on these bank stocks, uh, here. In terms of, now that we’ve gotten all of these results, what’s the best one to own and why in your view?
00:12 Victoria
Yeah, well, when you’re looking at these, really across the board, you have this mixed bag. You’ve gone through some of the elements of them. Goldman and Morgan Stanley really kind of nailed it, uh, this morning, especially with that investment banking like you were talking about. But they are your more expensive, um, names within that sector. So you’re looking at a price to book of around two and a half times for those. When you look at some of the other names like a Bank of America, a City group, a Wells Fargo, you’re sub 2% price to book and they had some really good earnings. So, even though JP Morgan typically is kind of your gold standard here, the price has gotten pretty high, the valuations on those. We love these names, we have them all in our portfolio, but I think if you’re looking to do an entry point as some of the prices have come down, I would look at some of these with lower valuations that have strong balance sheets. So maybe Bank of America might be one that you take a look at or even City. I think those are good opportunities. There’s good um opportunity for them to move higher and for their balance sheets to continue to improve. and we think the yield curve is going to continue to steepen throughout 2026 for lots of reasons, right? Fed cutting rates, term premiums going higher, global yields pushing higher, growth opportunities. So we do think financials are a good place to be. I would look at some of those lower valuations, a Bank America, uh Bank of America or City.
01:11 Speaker A
And Ines for A, I’m going to uh prevent myself from asking you about commodities here. I know I’m always asking you about gold and silver. yesterday Ines, I asked you about tin. I think people are sleeping on Morgan Stanley. I think new CEO Ted Pick at Morgan Stanley is getting the job done. You’re seeing in the trading business, you’re seeing it in investment banking, you’re seeing on the top and bottom lines.
01:25 Ines
Yeah, that’s right. in Morgan Stanley, it’s debt underwriting soaring 93%. So that’s significant. Um, and just as you were talking about uh these bank earnings today, really sort of in contrast with some of the other ones that we heard. Goldman, it’s highest level ever in equity trading fees, uh M&A advisory business. Um that sort 43 41%. I did note also something interesting, um that actually Bloomberg had picked up in their presentation. them talking about a momentum to accelerate in 2026, activating a flywheel of activity with flywheel being that buzzword that we may be hearing more and more about this year. But uh these stocks and near record high certainly the out performers among the banking the banking stocks.