Financial Stocks a Harbinger for the Economy

The sector’s continued weakness is a flashing warning sign.

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I'll feel better about the economy when financial stocks finally move into a sustainable uptrend. But just the opposite seems to be happening. Here is just how far some major stocks have fallen since a brief upturn following the last Fed rate cut: Citigroup, 22 percent; Bank of America, 13 percent; JPMorgan,19 percent; Merrill Lynch, 16 percent; Goldman Sachs, 20 percent; and Morgan Stanley, 16 percent. Ouch!