Relative Strength: Banks Stocks

[HeSaidSheSaid]

it seems big banks have held up well in comparison to the general stock market (historically, financial stocks held up well in the high inflation and rising interest rates).
BAC's ex-dividend date on Mar 2, for 22c

 

[traider]

Agreed

 

[Entomophagy]

Pretty useful info, thanks

 

[countryBoy641]

To the extent that the banking industry in the U.S. is becoming nationalized (government property)
it has successfully resisted the ubiquitous downturn in valuations.
For folks looking to "scalp trade // day trade", it probably offers some refuge (with the FED at your back).
But for any kind of swing traders, foremost is "balance sheet value" or lack thereof.
Rising interest rates (everywhere on the ladder), put a large hole in bankers' balance sheets.
Can't swing trade that from the long side.
If you doubt, review how holders of Lehman, Bear Stearns, Merrill Lynch, etc. common stock fared.
IMO

 

[Nobert]

But for any kind of swing traders, foremost is "balance sheet value"

Good luck to any swing trader that uses fundamentals and such timing, to outperform SnP in the long term by having positions in things like these.

 

[The_Krakenite]

I am long blue-chip cryptos and blue-chip banks. Regardless of what happens, I am hedged.

 

[deaddog]

I am long blue-chip cryptos and blue-chip banks. Regardless of what happens, I am hedged.

How are you hedged?

 

[HeSaidSheSaid]

To the extent that the banking industry in the U.S. is becoming nationalized (government property)
it has successfully resisted the ubiquitous downturn in valuations.
For folks looking to "scalp trade // day trade", it probably offers some refuge (with the FED at your back).
But for any kind of swing traders, foremost is "balance sheet value" or lack thereof.
Rising interest rates (everywhere on the ladder), put a large hole in bankers' balance sheets.
Can't swing trade that from the long side.
If you doubt, review how holders of Lehman, Bear Stearns, Merrill Lynch, etc. common stock fared.
IMO

the yield curves are inverted now. that might affect banks ability to borrow money cheaply and lend it out at higher rate or therefore, it d affect their revenue, but lending is a part of big banks' businesses. Historically, banks fared well in the high inflation and high interest rate.

I normally sell short a bank stock if I'm long financial etf (trading around my long position, I have several accounts with different brokers) one would make chump changes with this type of hedging (it also ties up your capital). kinda pair trading type of idea.