A Cautious Eye on Investment Banks

S&P says momentum for stocks of investment banks has been negative, and maintains a neutral longer-term outlook for the group

Back in February, based on the rolling 12-month relative price performance through Feb. 23, I cautioned that the momentum for the financial services subindustry was waning (BusinessWeek, 2/27/07). Since then, the S&P 1500 Investment Banking & Brokerage index has fallen 12.1%, while the S&P Composite 1500 (consisting of the large cap S&P 500, MidCap 400 and SmallCap 600 Indices) has risen 1.9%.

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