Economy Everything's Fine! Fed Chairman Powell Hints At Interest Rate Cut

Discussion in 'The War Room' started by Rational Poster, Jul 10, 2019.

  1. JonesBones

    JonesBones Excuse my contraflow

    Joined:
    Sep 28, 2011
    Messages:
    27,363
    Likes Received:
    12,437
    Location:
    New York
    Yet their own stocks can't get off the ground. They trade like utilities. They are massive under performers.

    The same logic could apply to any company. They make more money when interests rates are down by investing in the market. Stupid argument.

    Why are these stocks so unloved if they are making so much money?

    [​IMG]

    With long-term rates falling all year and a cut to the Federal Reserve’s benchmark likely this month, some investors in bank stocks aren’t waiting around to assess the fallout. Banks stocks have fallen in the past 12 months while most other industries gained, leaving them by one measure at the biggest discount to the broader market in more than a decade.





    “There was a big drop in long-term rates, and that will have a big impact on revenues in the second quarter, with long-term effects,” Brian Kleinhanzl, an analyst at Keefe, Bruyette & Woods Inc., said in an interview.



    Last quarter, Wells Fargo & Co. lowered its net-interest-income forecast for the full year to a decline, pushing the stock down. Bank of America Corp.’s shares also fell when it said NII would rise half as much as it did last year. Investors will be keen to see what happens to guidance when results get released.


    [​IMG]

    declines across the board.


    https://www.bloomberg.com/news/arti...r-rates-could-mean-the-end-of-profit-blowouts
     
  2. Tropodan

    Tropodan Silver Belt Platinum Member

    Joined:
    Apr 15, 2014
    Messages:
    10,542
    Likes Received:
    10,955
    Location:
    Canada eh!
    Canada will be fucked in another recession. We were the most prepared under a conservative government. And now we are probably one of the most vulnerable.

    Canadians are heavily leveraged.
     
  3. Stoic1

    Stoic1 Patriot

    Joined:
    Jan 6, 2005
    Messages:
    12,442
    Likes Received:
    12,421
    Location:
    USA!USA!USA!
    Is the sky falling yet?
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.