Want to Understand the Stock Market? Watch Bank Stocks

The coronavirus pandemic has made the already confusing stock market even more difficult to understand. Not only are many stocks way more volatile right now, but the Federal Reserve and other government agencies are taking actions to intervene at unprecedented levels, skewing the entire market more significantly than perhaps any other time in history.

There is obviously a lot of information coming from different sources, but if you want to understand more broadly what is really happening with the stock market and the overall economy, the performance of bank stocks can offer real clues, especially as most large banks prepare to release second-quarter earnings reports next week. Here's why:

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Source Fool.com