US banks update – shares evolution

After the recent growth in the US banks shares, we at doitinvest.com though it would be interesting to update and see how our portfolio looks like. One of the first blogs here at doitinvest.com was analysing the bank shares and ended up with a sector prudent buy reccomendation.

This is how our portfolio looked at July 1st:

US rank 2008 Symbol Name Share price $ (avg 2007) Share price July 1st Symbol 52 weeks high 52 weeks low Distance current share price from min (%)
10 BAC.N Bank of America 37,9 23,81 BAC. N 52,96 22,44 4,5%
12 JPM.N JP Morgan Chase 43 34,2 JPM.N 50,48 33,96 1,5%
22 C.N Citigroup 21,4 17,13 C.N 52,97 16,25 2,4%
28 WFC.N Wells Fargo 29,1 24,12 WFC.N 37,99 23,04 7,2%
34 GS.N Goldman Sachs 165,4 175,33 GS.N 250,7 140,27 31,7%
45 USB.N U.S. Bancorp 32,4 28,4 USB.N 35,25 27,31 13,7%
49 WB.N Wachovia 27 16,13 WB.N 53,1 14,7 3,7%
51 AXP.N American Express 43,7 40,02 AXP.N 65,89 37,81 7,9%
52 MS.N Morgan Stanley 45,7 36,6 MS.N 73,64 33,56 7,6%
56 BK.N Bank of New York Mellon 41,7 38,52 BK.N 50,26 36,92 12,0%

At August 22nd, on Friday, the portfolio evolved as follows (assuming all shares had equal weight):

US rank 2008 Symbol Name Share price $ (avg 2007) Share price July 1st Symbol 52 weeks high 52 weeks low Distance current share price from min (%) Share price Aug 22nd Difference to July 1st
10 BAC.N Bank of America 37,9 23,81 BAC. N 52,96 22,44 4,5% 30,2 26,7%
12 JPM.N JP Morgan Chase 43 34,2 JPM.N 50,48 33,96 1,5% 37,7 10,1%
22 C.N Citigroup 21,4 17,13 C.N 52,97 16,25 2,4% 18,1 5,9%
28 WFC.N Wells Fargo 29,1 24,12 WFC.N 37,99 23,04 7,2% 29,4 21,8%
34 GS.N Goldman Sachs 165,4 175,33 GS.N 250,7 140,27 31,7% 159,8 -8,9%
45 USB.N U.S. Bancorp 32,4 28,4 USB.N 35,25 27,31 13,7% 31,4 10,7%
49 WB.N Wachovia 27 16,13 WB.N 53,1 14,7 3,7% 14,4 -10,9%
51 AXP.N American Express 43,7 40,02 AXP.N 65,89 37,81 7,9% 38,8 -3,1%
52 MS.N Morgan Stanley 45,7 36,6 MS.N 73,64 33,56 7,6% 38,9 6,3%
56 BK.N Bank of New York Mellon 41,7 38,52 BK.N 50,26 36,92 12,0% 34,9 -9,3%

This is an average increase of 4,9% over two months, not bad at all, tight? Even if the bad news on Goldman Sachs and Wachovia would have downsized your portfolio, this still makes a decent return on our US banks investment portfolio.

What are the lessons to be learned by investors on this doitinvest portfolio? First of all, that a portfolio is as good as its composition. Secondly, investments are of course time dependant, meaning that the sooner (or the later) the investor reacts on the market news, the better or the worse is the performance of its portfolio.

We at doitinvest.com will continue to watch this market sector, so please be sure to come back to our site regularly.

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