Archive: April 2017

Community Bank Stocks Driven by Spread Between ROE and COE

In a previous article, the major bull market in bank stocks of 300%, from the first quarter of 1995 to year-end 2006, was driven by the widening spread between return on equity (ROE*) and the cost of equity (COE*), as defined by IDC Financial Publishing, Inc. (IDCFP). In the article,…

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Large Bank Stocks Driven by the Spread Between ROE and COE

The major bull market in bank stocks (KBW Index, Ticker “BKX”) from the 1st quarter of 1995 to year end 2006 of 300% was driven by the widening spread between bank return on equity (ROE*) and the cost of equity (COE**), as defined by IDC Financial Publishing, Inc. (IDC). During…

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