Bank Stocks Are Cheap Despite Rising Rates

Lucas and Luna dig into the big bank earnings beat and widening net interest margins, but stocks like JPMorgan and Bank of America are still trading below historical price-to-tangible-book multiples. Despite the Fed holding rates steady at 3.64 percent, bank profits surged in Q1 2026. Lucas argues the market is pricing in a recession that hasn't arrived, while Luna points to tightening commercial real estate and rising consumer credit delinquencies as real risks. They examine why value investors should care about the divergence between earnings power and market valuation, and what Berkshire Hathaway's big bank holdings signal. Specific numbers: JPMorgan's return on tangible common equity above 20 percent, Bank of America's net interest income up 11 percent year-over-year, and the five-day stock performance showing BAC up 2.8 percent while the broader market slid. #ValueInvesting #BankStocks #JPMorgan #BankOfAmerica #BerkshireHathaway #NetInterestMargin #FedPolicy #InterestRates #TangibleBookValue #EarningsBeat #RecessionRisk #CommercialRealEstate #ConsumerCredit #ROTCE #StockMarket #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo