Typically when interest rates rise financial companies improve their profitability. Higher interest rates mean that financial companies can offer higher loan rates themselves and that can boost their underlying profit levels. Higher interest rates can give a bit more margin of profit to financial companies. So, are the shares for the Bank of New York worth buying?
Over the last 10 years, the Bank has risen 7 times between now and the end of the year. The largest gain was last year with rises of over 40%! The largest loss was in 2018 with a -16.84% fall.
Major Trade Risks:
- The main risk for this outlook is any negative news for the Bank of New York’s stock.
- The other key risk is that the Fed pause its rate hiking cycle.