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Sellers have had nothing to cheer about for months but the bears can claim a small victory because the bank stocks were murdered on decent volume during Tuesday’s session. Bank stocks were smashed by a percent, and the big U.S. banks such as Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Goldman Sachs (NYSE: GS) fell significantly more.
The fall was probably more tied to the relentless 17% rally over the past two months, but bond phenom Jeff Gundlach may have had something to do with it.
In his presentation labeled “The Rise and Fall of the Roman Empire” DoubleLine Capital’s leader Jeff Gundlach was asked about Bank of America.
Gundlach responded with, “this is a bad time to be deploying money into risk assets.” He later went onto say, “sell Bank of America. Sell it today. Sell it at market.”
Banks have been the leadership group of the market over the past several months. But bearish statements like the one from Jeff Gundlach yesterday could spell trouble for market bulls.