Banks Underperforming Even As Interest Rates Rise
Tim Knight | Apr 06, 2022 03:14PM ET
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.
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?
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.
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