A Structural Short given by KRE And Regional Banks:
In the form of lower interest rates and a consistent flat yield curve, Regional banks face structural headwinds. The xlf stock at https://www.webull.com/newslist/nysearca-xlf market tends to rise above time, and betting against secular trends is a losing battle. Regional banks offer a pocket of weakness within that secular uptrend. As seen in the broader equity indices, Regional banks do not share the same secular current trends.
There’s an exemplar in Europe and Japan for persistently low-interest rates destroying the profitability of lending institutions. Larger “To Big To Fail” banks are a different story with more profit lines and are not part of this thesis.
‘Canaccord’s Tony Dwyer says Massive rally marks frustration’ phase of the recovery,
Instead of Monday’s massive rally, Canaccord Genuity’s Tony Dwyer finds stocks haven’t given up on the ’“frustration” stage of the recovery. He breaks down the post-market crash surrounding the three phases: Panic, relief, and frustration. Once you crash, you go into a panic phase,” the firm’s chief market strategist told CNBC’s “Trading Nation” on Monday. “You get this incredible decline, this panic. The market gets so historically oversold that it sets itself up for a counter-trend rally, a relief rally.”
According to Dwyer, The March 23 market low flashed the 2020 relief rally, Since then, the S&P 500and Dow has soared 35% while the tech-heavy Nasdaq has surged almost 40%. In the current frustration phase. Here, currently Dwyer notes market swing amongst two extremities. First feeling like it will go up high in a straight line, and the other one is it will crash.
Saying stocks are too expensive Top money manager warns.
Xlf stocks are seeing their worst phases and weeks within a span of 2 months whereas bargain warning was given by Bryn Mawr Trust’s Jeffrey Mills. He believes that in the agony of fall in economy and whole business pricing of street walls is not correctly pricing. On Friday, CNBC’s “Trading Nation” told the firm’s chief investment officer that risk-reward is not loved in the market right now. A rally above 2,800 [on the S&P 500] to lighten up a little bit on equities.
In late March, this was the strategy outlined in the show. And with the coming of mid-April, exposure was cut down and no regrets were there in his move. With 20 times forward earnings, the market is trading right now. If you want to know more stock information like smta stock, you can visit at https://www.webull.com/newslist/nyse-smta.