Have you missed the run up in stock prices for American banks? Bank analyst Dick Bove doesn't think it matters because this industry is going to have a long run of growth ahead of it. He provides some facts for us:
- Bank earnings have increased for 14 consecutive quarters.
- Bank earnings were up 22% in 2012.
- Total bank earnings will hit $145 billion in 2012 which is close to the all time record for the industry.
- Fourth quarter 2012 will be the all time high for earnings for the bank industry.
- His point is that all of the concerns over the forced deleveraging, a weak housing market and increasingly overwhelming regulation do not fit with the facts relating to the performance of the industry.
- The earnings, dividends and stock repurchases of this industry are going to increase for a long time to come; the last cycle of earnings increases lasted 17 years. The one before that which began in 1959 lasted 50 years.