The SPDR S&P Bank ETF (NYSE:KBE) is down 18.6% year-to-date, only slightly outperforming the S&P 500 as a whole. Rising interest rates are typically good news for bank earnings, but the weakness in bank stocks as of late has been driven by concerns over a potential slowdown in the lending market.
Attractive Valuation: On Monday, Bank of America analyst Ebrahim Poonawala said bank stocks are very attractively valued relative to historical levels, but it may still be too early for investors to buy the dip.
