When interest rates are rising that tends to gains in financial stocks. As interest rates increase, so do the margins that Banks can charge for their loans. Rising debt repayments, especially in a very fast-moving rate change environment, mean that banks’ profitability can gain.
With interest rates rising around the world, and the Fed on course to keep hiking into next year, is this a great time to consider investing in financials? By using the Seasonax screener you can look for potential winners and then compare them to each other.
The seasonals for both BlackRock and Bank Of New York are very strong from Oct 13 until around the end of December with gains in 8 out of 10 years for the Bank of New York and 9 out of 10 years for BlackRock. So, is it time to invest in financials?
Major Trade Risks: The major trade risk here is that the US has a very hard landing and that results in debt defaults.
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