Managerial Finance
MWF 11:00
Final Project
Analysis over Project With the last project over the three companies Bank of America, Goldman & Sachs, and J.P. Morgan it has made a little weary of doing any investing in banks in the stock markets. They are way too volatile for most people that want a safe return on their investment. These investments look bad because of the economy we are currently in. Because of each company’s beta they rely heavily upon the economy. So a small fluctuation can cause them to lose money and their stock prices to fall below average. As opposed to when the economy is doing well their stock is on the rise and they are bringing in money to their investors. Neither company’s capital gains were worth noting. None of the companies actually broke double digits in a year for capital gains. Which as I referred to earlier in my paper is due to the health of the economy and investors not wanting to put their money into a risky investment. The best capital gain in a year by either of the three companies was $4.27 in 2011 by J.P. Morgan. That is pretty bad compared to other companies in other industries. The company’s average returns for J.P. Morgan, Goldman & Sachs, and Bank of America was -6.19%, -17.03%, -46.19% respectively. Meaning the companies are bringing back a good return on their investment to investors. They are actually losing them money each day their money is invested in the company at this point in time. If you were looking for a way to lose money and not care these companies right now are you safe bet, or if you like to gamble and you are willing to bet the market will turn around for these companies. You could potentially earn a good return if the banking market flips around for the best. The article I used was how the banks were posting solid quarterly numbers. This was published in July 2000 right before the terrorist attacks the following year, and right before our stock bubble burst. These weren’t any major financial feats in one part of the article it talked about how the Bank of New York beat financial experts predictions by pennies and this was a good year for