Bank of America (NYSE:BAC) is down 3.06% today. And while it's leading the charge in that regard, its peers and the markets aren't far behind. Just a down day for all involved, or is there something else at work?
The tale of the tickers
First, here's a quick overview of where the big banks and the market are shaking out so far:
- Citigroup is down 2.14%.
- JPMorgan Chase is down 2.04%.
- Wells Fargo is down 0.12%.
The markets are in the red, as well, with the Dow Jones Industrial Average down 0.39%, the S&P 500 down 0.64%, and the Nasdaq down 0.57%. Ouch all around.
Foolish bottom line
Regarding B of A in particular, there's not much going on right now. It was announced yesterday the superbank would pay out $165 million to the National Credit Union Association over allegations that the mortgage-backed securities it sold to corporate credit unions caused them to fail.
But compared to the $10 billion settlement B of A reached in January over the sale of bad mortgages to Fannie Mae, $165 million is next to nothing, and is therefore hardly likely to be spooking investors. And that wouldn't even explain why the rest of the sector -- as well as the markets -- are performing so terribly.
There was, from one perspective, disappointing jobs data. ADP, the payroll-processing giant, reported today that America's private sector added 158,000 jobs in March -- not bad in an absolute sense, but less than the markets were expecting.
The bottom line is, there's no clear answer for the banking sector's and the markets' terrible performance today, but that's alright. Sometimes the invisible hand of the market slaps you down, sometimes it picks you up.
As a Foolish investor, your job is to remember that you're in it for the long-haul, that you're going to witness a lot of ups and downs over a lifetime of investing. But so long as the fundamentals of the companies you're invested in are sound, and you remain committed to their corporate philosophies and business models, have faith that your money is in the right place.