Banks/Broads in the face of elevated L/T yields

Not very happy signaling from the Pigs

Neither nominal KBE…

…nor the KBE/SPY ratio are looking very good in the face of rising yields. Indeed, KBE above is in a nasty looking pattern as it stands now. The banks are normally thought to benefit from rising yields, but I think a ‘carry’ on the short end is busted. But then again, you could view the whole modern casino as busted in some way, right? IMO brought to you by our over-meddling central planners.

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This Post Has 2 Comments

  1. Michael B

    The central planners made this mess. Now, we all get to wallow in it. Such a Deal.

    1. Gary

      Best we can do is understand it as best as possible, try to stay out of its way when needed and capitalize when we can. Much easier said than done w/ a self-conscious entity like the Fed that opens its mouth at will to manage expectations.

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