From: Nicole Urken
Sent: Thursday, March 15, 2012 8:17 AM
To: James Cramer; Edward Graham
Subject: RE: Bank sector
Just got from S&P: Current weighting of financials is 14.65 percent. This compares to 15.78 percent in March 2011, 16.50 percent in March 2010, 10.81 percent in March 2009, 16.81 percent in March 2008, and 21.63 in March 2007.
For Mad Money’s seventh year anniversary show, we took a look at the best performing stocks of the last seven years along with the last year to try to identify common themes. Ultimately, the “Best of Seven” performers over the long haul of the show since 2005 have demonstrated staying power given growth from niche market opportunities while the “Magnificent Seven” top performers of the past year, largely speculative names, reflect the importance of risk-taking within a portfolio for out-sized gains.
However, in addition, we took a look at the performance of the broader sectors and indices over the course of the show to get a sense of the bigger picture. A reminder of the staggering underperformance of the financials as laid out above—down over 50 percent since Mad Money began—is timely amidst the surge we are currently seeing in the group. (The latest boost to the group, of course, has come JP Morgan front-running the Federal Reserve’s stress test results with a $15bn share repurchase announcement and 10 percent dividend raise—not to mention the largely positive stress tests telling us that 15 of the 19 largest banks in America have enough capital to withstand another severe recession.)