- Says big purchase by Dimon `has to imply some confidence'
- Banking shares rebound on Friday following a sell-off
A decline in bank stocks this week may have created a buying opportunity for investors who can follow the example of JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, according to Brent Schutte, chief investment strategist of Northwestern Mutual Life Insurance Co.’s wealth-management unit.
“Longer-term this is what makes opportunities for value,” Schutte said Friday in an interview. Banking stocks may eventually “be a decent place to be. I think if you look at what Jamie Dimon did, certainly that has to imply some confidence.”
The 24-company KBW Bank Index slipped 7.9 this week through Thursday, the day Dimon spent a year’s worth of pay to buy 500,000 shares of JPMorgan after they slumped to the lowest price in more than two years. The index rebounded Friday, gaining more than 4 percent as of 1:32 p.m. in New York.
Global stocks entered a bear market Thursday amid a rout in bank shares and plunging oil prices. JPMorgan, the largest U.S. lender by assets, rose 7.2 percent Friday after falling 8.1 percent for the week through Thursday. Citigroup Inc. gained 6.3 percent after a 12 percent decline.