Institutional Investor (April 7)
“Companies that have gone public by merging with a special purpose acquisition company have underperformed the S&P 500 by eighty percentage points since 2018.” Indeed, “at no time during the recent SPAC boom—except for a few days in early 2021—did these new listings beat the S&P.”
Bloomberg (January 12)
“Since Kuroda took office five years ago, bank stocks have underperformed the broader market by more than 50 percentage points,” but there are signs that Japanese banks will soon lose their “cheapest in the world” status. Despite a 5.7% average ROE, large Japanese financial institutions trade at just 0.69 of book. If, as widely expected, the BoJ relaxes its yield curve control, these large financial institutions would receive a welcome boost.
Tags: BOJ, Japanese banks, Kuroda, ROE, Stocks, Underperformed, Yield curve
