Charles Schwab Corp.’s worst month in more than 35 years has sparked a debate among analysts as to whether the brokerage giant has been unfairly punished by investors amid growing fears about the US banking sector.
Shares of the firm plunged 33% in March, their biggest drop since October 1987, the month when the biggest single-day stock market crash, dubbed Black Monday, occurred. The rout wiped out $47 billion in market value from Schwab, roughly equivalent to the size of Truist Financial Corp.
“There are times in markets where logic is thrown out the window and emotion takes over and I feel like this is one of those moments with Schwab,” said Adam Sarhan, founder of 50 Park Investments.
Source : Schwab Has Its Worst Month since 1987 Due to Cash Management Woes