Monday, October 12, 2020

U.S. bank, housing stock divide looks short-lived to BofA

Record-setting gains for shares of U.S. homebuilders are at odds with weakness in bank stocks, according to Michael Hartnett, Bank of America Corp.’s chief global investment strategist. Hartnett compared S&P 500 indexes for the builders and lenders in a report Friday. The housing index climbed 38% for the year through Friday and ended last week at a record, according to data compiled by Bloomberg. The bank index, by contrast, fell 33%. Based on the groups’ historical tendency to move in tandem, Hartnett wrote this about the outlook: “Either housing buckles or banks play catch-up.”

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