I don’t have charts handy, so hopefully this will suffice:
Amazon, Netflix and Microsoft are responsible for 70% of the S&P 500 gains this year thus far. However, the S&P 500 is only up 1.6% and within the S&P 500, the financial sector is down 5.6%. But it’s the macro view that setting up that’s pointing to inevitable pain for the bank stocks.
Volatility is down relative to the 1st quarter, so any bank that has a trading desk has seen their profits down (transaction fees to investor) due to lower volatility.
Interests rates have increased, so more people can’t taking out home loan because they no longer afford to buy a home, thus origination fees are down, thus profits are down.
As the 10 yr/2 yr bond yield spread decreases, this is squeezing bank margins.
As the economy slows down and eventually contracts, banks will be scared to continue to issue loans, thus profits will go down.
I don’t have charts handy, so hopefully this will suffice:
Amazon, Netflix and Microsoft are responsible for 70% of the S&P 500 gains this year thus far. However, the S&P 500 is only up 1.6% and within the S&P 500, the financial sector is down 5.6%. But it’s the macro view that setting up that’s pointing to inevitable pain for the bank stocks.
Volatility is down relative to the 1st quarter, so any bank that has a trading desk has seen their profits down (transaction fees to investor) due to lower volatility.
Interests rates have increased, so more people can’t taking out home loan because they no longer afford to buy a home, thus origination fees are down, thus profits are down.
As the 10 yr/2 yr bond yield spread decreases, this is squeezing bank margins.
As the economy slows down and eventually contracts, banks will be scared to continue to issue loans, thus profits will go down.