The drooping stocks of investment banks and brokerages have been diverging from the wider market in the last few months. Back in 2007, a similar trend preceded the market crash. Now, the sector's pattern could hold a wider warning for investors.
When JPMorgan Chase reports earnings early Wednesday, analysts expect it to show earnings of 64 cents per share, up from 40 cents last year. Fees from investment banking will likely drop, but stronger loans could be a help.
Much like tech stocks after the dot-com bubble burst, financials have survived another burst bubble, this time in credit. And much like techs did, financials could be facing an extended stretch where survive is the best they can do. Thriving again isn't in sight.
