Wells Fargo & Co (WFC): Another Investing Lesson From the Big Four

With the rebound of the housing market plugging along in a slow but steady pace, mortgage lending will be up as more homebuyers return to the market. Since Wells is the biggest mortgage originator of the Big Four, it has the most to gain from the recovery. Home prices have been steadily increasing, too, which will prop up loan balances and increase revenue. Though some are concerned about another housing bubble with the steep rise in housing prices, Wells Fargo & Co (NYSE:WFC) CFO Tim Sloan doesn’t believe that there’s reason to worry. Since credit standards are still high and sub-prime lending is rare in this market, the possibility of a bubble is very small, according to Sloan.

Step out from the herd
Though Wells Fargo & Co (NYSE:WFC)’s share-price movements may have stuck with the herd for the most part today, that doesn’t mean you have to, too. As a Foolish, long-term investor, you know that the fundamentals of Wells Fargo are strong and the current legal woes of another bank do not necessarily bode ill for it. Today’s lesson shows that though other banks and their investors can influence how your stock performs on any given day, you don’t have to fall for the hype. Stick with your initial investment thesis and you’ll avoid unnecessary losses.

The article Another Investing Lesson From the Big Four originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned — you can contact her here. The Motley Fool recommends and owns shares of Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase (NYSE:JPM).

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