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matheis12
Jan 19, 2023 10:22 AM

HSBC - Short Short

HSBC Holdings, plc.NYSE

Description

I see the banking sector as still problematic, especially if the loan defaults of 2007/2008 should repeat themselves.
Consumer credit card debt is currently at a new high with an interest rate of around 20.4% in the US (see links attached below).
If the rate doesn't slowly go down, I'd wager that the system will collapse again as unemployment rises. But this is only an assumption.

The current P/E ratio is between 12-14. So we're not exactly a bargain, but we're not completely overvalued either.
In comparison, Goldman Sachs Group is currently rated at 10.6, Morgan Stanley is rated at 14 and JPMorgan Chase & Co. got a 12.

The explanation of the resistances is included in the chart. At the moment I doubt whether this will lead us to a new low but a pullback to $30, which would still have 14% in it, is still to be expected.

Best regards
Mathis Frye

fred.stlouisfed.org/series/CCLACBW027SBOG
fred.stlouisfed.org/series/TERMCBCCINTNS
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