3 Stocks Delivering Market-Beating Returns

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The last full week of trading of the year got off to a great start today, with the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the broader S&P 500 (SNPINDEX: ^GSPC  ) up 0.8% and 1.2%, respectively. The ostensible explanation for the optimism that carried stocks higher lies with positive developments in the fiscal cliff jamboree. Financials, which are a bellwether for policy uncertainty and the risk on/ risk off trade, were the best-performing sector, with the S&P 500 Financials index gaining 2.1%.

Fiscal cliff watch: It appears that negotiations to avert the "fiscal cliff" may finally gaining some momentum. Following reports that John Boehner blinked over the weekend, offering to allow tax rates to increase for those earning over $1 million annually, the House speaker met with President Obama today.

With two weeks until the putative Dec. 31 deadline, it's none too soon for lawmakers to be gearing up their efforts. While this bodes well for the odds of an agreement in the just before -- or a little bit after -- the new year rolls around (I think the latter is more likely), it's worth remaining grounded. As PIMCO CIO told CNBC today: "If we avoid the fiscal cliff ... then we [are] still looking at still sluggish growth of 1.5 to 2 percent next year." I'll paraphrase and add that even if we avoid the fiscal cliff, stocks could face an earnings cliff next year.

Click here for our latest fiscal cliff coverage.

The micro view: Bank of America (NYSE: BAC  ) was the best-performing Dow component today, up 4%. In fact, B of A has led its universal bank peers Citibank (NYSE: C  ) and JPMorgan Chase (NYSE: JPM  ) in smashing the broad market this quarter:

BAC Chart

BAC data by YCharts.

In fact, despite some nerve-jangling declines during the second quarter, 2012 has produced a remarkable turnaround in fortunes for this group, particularly B of A:

BAC Chart

BAC data by YCharts.

Despite this remarkable performance, there is reason to believe that BofA could continue to produce market-beating gains over the next several years. To find out why, click here to request The Motley Fool's premium report, which includes twelve months of ongoing coverage.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2158573, ~/Articles/ArticleHandler.aspx, 10/28/2016 8:11:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:00 PM
BAC $16.91 Up +0.04 +0.24%
Bank of America CAPS Rating: ****
C $49.93 Down -0.08 -0.16%
Citigroup CAPS Rating: ***
JPM $69.23 Up +0.10 +0.14%
JPMorgan Chase CAPS Rating: ****