Here we have the Bank Index vs Fed Funds.
What can we deduce here?
Well, banks are likely to be far less profitable when interest rates are falling... and in the Eurozone firms' case, we see profitability dampened heavily with negative real rates of return.
This is likely due to the misallocation of capital that occurs with risk premium compression.
This chart shows the ratio of XAUUSD vs BKX bank index
Gold is typically considered a secure investment in times of economic uncertainty
The KBW Bank Index (ticker BKX) tracks the stocks of 24 major banking companies since the early 90s.
This index serves as a benchmark of the banking sector.
During the Great Financial Crisis of 2007–08 questions regarding...
I won't comment on this one and will just let the data and idea speak for itself. IF this happens its going to be a very painful period for many on the lower-bound of income generation who rely on credit creation to make ends meet. Please consider philanthropic endeavours from any capital made on this trade. Godspeed.
***This is not investment...
The selloff has been fairly steep in this index as we now trading below the descending channel. We are very oversold here, so let's look for a re-entry back into the channel and see if we can hit channel resistance before we get another consolidating sell-off.
Here's the weekly snapshot:
We can see we are close to the...
I am not one to like the earnings reaction at all with the banks but there is signs prices are trying to move hire. Now we had an incredible earnings week, so this little up tick could be deceiving. I would of muck preferred a squeeze off support here. Since, we don't see that, very difficult to call a long. This is also a start for a new month. My market...