Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Banks Underperforming Even As Interest Rates Rise

Published 04/06/2022, 03:14 PM
Updated 07/09/2023, 06:31 AM

The regional S&P Bank ETF (NYSE:KBE) broke its major trendline within the past week. This was positive news for the bears of the world (AKA me, Baby Bear, TNR, and four other people).

This positive news has gone super-positive, as the H&S topping pattern of KBE is now complete. Banks are screwed and tattooed. It couldn’t happen to a nicer group.

KBE Daily Chart

I would also point out this important fact: what is the one thing banks love? High-interest rates! That’s where their profits come from. And what has the 10-year yield done?

10-year Treasury Yield Daily Chart

UP, UP, UP! My point is: if banks are underperforming in an environment of roaring interest rates, God help them (well, actually, don’t...) if bonds strengthen and rates weaken.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.