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A Goldman Sachs sign is seen on the floor of the New York Stock Exchange, April 16, 2012.
A Goldman Sachs sign is seen on the floor of the New York Stock Exchange, April 16, 2012.
(BRENDAN MCDERMID/REUTERS)

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Goldman breathes new life into investment bank rally

A blowout earnings report from Goldman Sachs Group Inc. on Wednesday may send investors jumping on the bandwagon of U.S. investment bank stocks. A look at historical valuation levels in the sector suggests this would be entirely justified.

The accompanying chart tracks a market-cap-weighted benchmark of the five major U.S. investment banks – JPMorgan Chase & Co., Citigroup Inc., Bank of America, Goldman Sachs and Morgan Stanley – compared to their valuation levels in terms of price to tangible book value.