Jim Cramer on Thursday assessed the latest slate of significant bank earnings. Jim is the host of Mad Money.
After assessing, Jim expressed about sticking his charitable investment trust with its ownership of Wells Fargo and Morgan Stanley.
Jim said, “The banks are all over the place this earnings season, which just goes to show the importance of individual stock picking.”
He added, “All banks are not created equal.”
Jim expressed that the best thing about Citigroup’s stock is that it is cheap, trading at nearly 80% of its real book value.
He thinks that the sharp decline in JPMorgan’s stock post-earnings has been slightly exaggerated.
Jim expressed that his charitable trust doesn’t own Goldman Sachs since it already owns Morgan Stanley and doesn’t need two investment banks in portfolio.
Jim said, “Like Wells Fargo, Bank of America is highly sensitive to interest rates, which means it’s in a great position for 2022.”
Jim anticipates 2022 to be a strong year for the banks overall owing to possibilities of more than three interest rate hikes by the central bank.