Banks Off to Strong Start; Wells Undervalued
A strong economy has led to strong early results from banks, and we see value in Wells Fargo.
Jim Sinegal: It's starting off to be a great quarter for banks. For example, JPMorgan is now firing on all cylinders. They reported a 19% return on tangible equity; that's two percentage points above their long-term targets of 17%.
One of the factors that's been helping is the economy is performing very well. Credit quality is excellent. JPMorgan charged off essentially zero commercial loans, so perfect credit quality this quarter.