NEW YORK ( TheStreet) -- After a roaring start to the year, bank stocks are losing steam, underperforming the broader markets in the second quarter so far, despite a mostly positive earnings season.
The KBW Bank Index has slipped 2.9% since April 13, which marked the beginning of the bank earnings season, while the S&P 500 has lost about 1.5%.
Bank of America (BAC - Get Report), which led the market rally in the first quarter has shed 17% in the past month alone. Citigroup (C - Get Report), which also benefited from the "risk-on" rally in the early part of the year has shed about 10%.
Meanwhile, safer bets such as JPMorgan Chase (JPM - Get Report) and Wells Fargo (WFC - Get Report) have managed to contain their weakness relatively better than their large-cap peers, losing only 4% and 1% respectively.This is starting to look eerily like 2011, when bank stocks performed well in the early part of the year, only to become the worst performers of the year as European debt crisis intensified and macro-economic data took a turn for the worse. Should investors cash their chips and run?
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