Banks & / or insurers as rates rise?
James, Interest rates are hiked, bank stocks go down. Why the sudden reaction when the market was already expecting higher rates by year end & 2023? Were the banks in a no win situation . . . 1. Rates go up, share price goes down due to concerns over lending and future defaults? 2. Rates stay lower, margins are still compressed? I would have thought that an increase in rates would have benefitted banks somewhat, as well as insurers; however, they don't seem to have at all this week. What's your opinion, is it a good time to exit the banks? Thanks, Bernie